The ringgit is expected to trade in a tight range with a downward bias against the US dollar next week as investors remain cautious in view of the global economic uncertainty, an analyst said.
SPI Asset Management managing director Stephen Innes said the ringgit was expected to trade between 4.5250 and 4.5450 in the coming week amid a firmer greenback that was supported by robust United States (US) data.
“This week’s run of strong data has upped bets for a Federal Reserve (Fed) hike in June,” he told Bernama.
Meanwhile, Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said investors would be closely monitoring the US debt ceiling issue as it was nearing the deadline of June 1.
“Therefore, investors will be on the lookout for the next communique from the US Treasury Secretary Janet Yellen sharing further updates next week.
“At the prevailing level, the ringgit is quite close to the resistance level of 4.5491,” he said.
