The ringgit may continue to hover around the 4.375 – 4.395 level with a downside bias against the USD as the USD index (DXY) is expected to extend its gains due to US stronger-than-expected jobs report Kenanga Research said in a note.
It said that the DXY may continue to trade above the 102.0 level due to weakening global economic growth prospects and rising inflationary pressure. “However, ECB’s potential hawkish turn and improving domestic macroeconomic data may benefit the ringgit,” Kenanga said.
Reviewing the performance of the ringgit, the stockbroking firm said that despite a stronger yuan due to China’s reopening optimism, the ringgit depreciated marginally against the USD as the 10-year US Treasury yield climbed above the 2.9% level amid global inflation fears.
On top of that, it said that the local note was also pressured by volatile crude oil prices due to the Russian oil embargo and Malaysia’s growing food inflation (4.1%; Mar: 4.0%) due to rising input costs and increased demand.
