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The Star
3 hours ago
- Business
- The Star
Market jitters to set tone for ringgit next week, with RM4.24-RM4.26 range expected
KUALA LUMPUR: The ringgit is expected to hover around RM4.24 to RM4.26 next week amid mixed signals in the market. This follows the anticipation of a potential meeting between United States (US) President Donald Trump and Chinese leader Xi Jinping, as well as the upcoming Federal Open Market Committee (FOMC) meeting by the end of the month. SPI Asset Management managing partner Stephen Innes said the market is expected to adopt a tone of cautious optimism next week, as the potential Trump-Xi meeting could reset the US-China dialogue, lifting broader Asian sentiment. "For Malaysia, any thaw in trade tensions could brighten the macro outlook and, by extension, offer a floor to the ringgit in the near term. That diplomatic backdrop, however tentative, has helped curb more aggressive ringgit selling into the weekend,' he told Bernama. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that the next FOMC meeting will be held on July 29 and 30, and therefore, market participants will be closely watching to see whether the US Federal Reserve (Fed) will cut the Fed Fund Rate. "Next week, there are not many data points to look at other than some comments from the Fed officials; thus, the market will be adopting a wait-and-see stance,' he added. Meanwhile, Kenanga Investment Bank Bhd said the ringgit remains supported by improving domestic fundamentals, rising foreign direct investment inflows, and infrastructure catalysts such as the resumption of the Mass Rapid Transit 3 project. "We expect US dollar-ringgit to range between RM4.23 to RM4.25 per US dollar in the near term,' it said in a note today. On a Friday-to-Friday basis, the ringgit ended the week better against the greenback, closing at 4.2410/2455 as compared with 4.2475/2525 previously. The local note also traded higher against a basket of major currencies. The ringgit appreciated vis-à-vis the Japanese yen to 2.8517/8549 from 2.8893/8929, and strengthened against the British pound to 5.6999/7060 from 5.7524/7592 last Friday. It also rose versus the euro to 4.9336/9388 from 4.9679/9737 at the end of last week. Against ASEAN currencies, the ringgit traded mostly higher. The local note firmed against the Singapore dollar to 3.3027/3065 from 3.3186/3228, strengthened versus the Indonesian rupiah to 260.2/260.6 from 261.8/262.3 previously, and improved against the Philippine peso to 7.41/7.43 from 7.52/7.53 last Friday. However, it weakened versus the Thai baht to 13.3027/3065 from 13.0668/0886. - Bernama
Malay Mail
6 hours ago
- Business
- Malay Mail
Ringgit to hold steady next week amid Fed watch and trade talk hopes, say analysts
KUALA LUMPUR, July 19 — The ringgit is expected to hover around RM4.24 to RM4.26 next week amid mixed signals in the market. This follows the anticipation of a potential meeting between United States (US) President Donald Trump and Chinese leader Xi Jinping, as well as the upcoming Federal Open Market Committee (FOMC) meeting by the end of the month. SPI Asset Management managing partner Stephen Innes said the market is expected to adopt a tone of cautious optimism next week, as the potential Trump-Xi meeting could reset the US-China dialogue, lifting broader Asian sentiment. 'For Malaysia, any thaw in trade tensions could brighten the macro outlook and, by extension, offer a floor to the ringgit in the near term. That diplomatic backdrop, however tentative, has helped curb more aggressive ringgit selling into the weekend,' he told Bernama. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that the next FOMC meeting will be held on July 29 and 30, and therefore, market participants will be closely watching to see whether the US Federal Reserve (Fed) will cut the Fed Fund Rate. 'Next week, there are not many data points to look at other than some comments from the Fed officials; thus, the market will be adopting a wait-and-see stance,' he added. Meanwhile, Kenanga Investment Bank Bhd said the ringgit remains supported by improving domestic fundamentals, rising foreign direct investment inflows, and infrastructure catalysts such as the resumption of the Mass Rapid Transit 3 project. 'We expect US dollar-ringgit to range between RM4.23 to RM4.25 per US dollar in the near term,' it said in a note today. On a Friday-to-Friday basis, the ringgit ended the week better against the greenback, closing at 4.2410/2455 as compared with 4.2475/2525 previously. The local note also traded higher against a basket of major currencies. The ringgit appreciated vis-à-vis the Japanese yen to 2.8517/8549 from 2.8893/8929, and strengthened against the British pound to 5.6999/7060 from 5.7524/7592 last Friday. It also rose versus the euro to 4.9336/9388 from 4.9679/9737 at the end of last week. Against Asean currencies, the ringgit traded mostly higher. The local note firmed against the Singapore dollar to 3.3027/3065 from 3.3186/3228, strengthened versus the Indonesian rupiah to 260.2/260.6 from 261.8/262.3 previously, and improved against the Philippine peso to 7.41/7.43 from 7.52/7.53 last Friday. However, it weakened versus the Thai baht to 13.3027/3065 from 13.0668/0886. — Bernama
Barnama
7 hours ago
- Business
- Barnama
Market Jitters To Set Tone For Ringgit Next Week, With RM4.24-RM4.26 Range Expected
WORLD By Harizah Hanim Mohamed KUALA LUMPUR, July 19 (Bernama) -- The ringgit is expected to hover around RM4.24 to RM4.26 next week amid mixed signals in the market. This follows the anticipation of a potential meeting between United States (US) President Donald Trump and Chinese leader Xi Jinping, as well as the upcoming Federal Open Market Committee (FOMC) meeting by the end of the month. SPI Asset Management managing partner Stephen Innes said the market is expected to adopt a tone of cautious optimism next week, as the potential Trump-Xi meeting could reset the US-China dialogue, lifting broader Asian sentiment. 'For Malaysia, any thaw in trade tensions could brighten the macro outlook and, by extension, offer a floor to the ringgit in the near term. That diplomatic backdrop, however tentative, has helped curb more aggressive ringgit selling into the weekend,' he told Bernama. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that the next FOMC meeting will be held on July 29 and 30, and therefore, market participants will be closely watching to see whether the US Federal Reserve (Fed) will cut the Fed Fund Rate. 'Next week, there are not many data points to look at other than some comments from the Fed officials; thus, the market will be adopting a wait-and-see stance,' he added. Meanwhile, Kenanga Investment Bank Bhd said the ringgit remains supported by improving domestic fundamentals, rising foreign direct investment inflows, and infrastructure catalysts such as the resumption of the Mass Rapid Transit 3 project. 'We expect US dollar-ringgit to range between RM4.23 to RM4.25 per US dollar in the near term,' it said in a note today.
Yahoo
13 hours ago
- Business
- Yahoo
Dollar Weakens as a Fed Official Calls for Rate Cuts
The dollar index (DXY00) Friday fell by -0.24%. The dollar came under pressure today following comments from Fed Governor Christopher Waller on Thursday evening, who stated that he supports a Fed interest rate cut at the July 29-30 FOMC meeting. Also, an easing of inflation expectations in today's University of Michigan July inflation expectations report was dovish for Fed policy and bearish for the dollar. Losses in the dollar were limited Friday due to the stronger-than-expected US housing starts and building permits reports. Also, the University of Michigan's US July consumer sentiment index rose more than expected to a 5-month high, a bullish factor for the dollar. More News from Barchart Could the Pentagon's $550 Million Bet on Rare Earths Signal the Next Market Boom? Solid US Economic News Lifts the Dollar Dollar Falls on Dovish Comments from a Fed Official Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! US June housing starts rose +4.6% m/m to 1.321 million, stronger than expectations of 1.300 million. Also, Jun building permits, a proxy for future construction, unexpectedly rose +0.2% m/m to 1.397 million versus expectations of a -0.5% m/m decline to 1.387 million. The University of Michigan's US July consumer sentiment index rose +1.1 to a 5-month high of 61.8, stronger than expectations of 61.5. The University of Michigan US July 1-year inflation expectations indicator fell to a 5-month low of +4.4%, better than expectations of no change at +5.0%. Also, the July 5-10 year inflation expectations indicator eased to a 5-month low of +3.6%, weaker than expectations of +3.9%. Thursday evening, Fed Governor Christopher Waller said, "With inflation near target and the upside risks to inflation limited, we should not wait until the labor market deteriorates before we cut the policy rate. I believe it makes sense to cut the FOMC's policy rate by 25 basis points two weeks from now." On the trade front, President Trump said late Wednesday that he intends to send a tariff letter to more than 150 countries notifying them their tariff rates could be 10% or 15%, effective August 1, and that the group was "not big countries who don't do that much business with the US." Federal funds futures prices are discounting the chances for a -25 bp rate cut at 5% at the July 29-30 FOMC meeting and 58% at the following meeting on September 16-17. EUR/USD (^EURUSD) Friday rose by +0.20%. Dollar weakness on Friday sparked gains in the euro after Fed Governor Waller said he supports a Fed rate cut later this month. Friday's Eurozone economic news was negative for the euro after Eurozone May construction posted its biggest decline in 2.5 years and German June producer prices fell at the steepest pace in 9 months, which are dovish factors for EBC policy. Eurozone May construction output fell -1.7% m/m, the biggest decline in nearly 2.5 years. German June PPI fell -1.3% y/y, right on expectations and the steepest pace of decline in 9 months. Gains in the euro were also limited Friday after the Financial Times reported that President Trump is pushing for a minimum tariff of 15%-20% in any trade deal with the European Union (EU), as Mr. Trump has been unmoved by the latest EU offer to reduce car tariffs. Also, the Financial Times said that EU trade commissioner Sefcovic gave a downbeat assessment of recent trade talks in Washington on Friday to EU ambassadors. Swaps are pricing in a 1% chance of a -25 bp rate cut by the ECB at the July 24 policy meeting. USD/JPY (^USDJPY) Friday rose by +0.11%. The yen on Friday gave up an early advance and turned lower as it remains under pressure ahead of Sunday's upper house election in Japan, where there is concern that Japanese Prime Minister Ishiba's Liberal Democratic Party (LDP) could lose its majority. The promises by Japan's ruling Liberal Democratic Party of cash handouts to voters and promises of lower taxes by the opposition have sparked concerns of fiscal deterioration, which are bearish for the yen. The yen initially moved higher against the dollar on Friday after Japan's June national CPI ex-fresh food and energy rose at the fastest pace in 17 months, a hawkish factor for BOJ policy. Also, lower T-note yields on Friday were bullish for the yen. Japan's June national CPI rose +3.3% y/y, right on expectations. June national CPI ex-fresh food and energy rose +3.4% y/y, stronger than expectations of +3.3% y/y and the largest increase in 17 months. August gold (GCQ25) on Friday closed up +13.00 (+0.39%), and September silver (SIU25) closed up +0.161 (+0.42%). Precious metals settled higher on Friday due to a weaker dollar. Also, lower T-note yields on Friday were bullish for precious metals. Dovish comments from Fed Governor Waller on Thursday evening boosted demand for precious metals as an inflation hedge, as he expressed support for a Fed interest rate cut at the July 29-30 FOMC meeting. Precious metals also received safe-haven support from global trade tensions, following President Trump's announcement on Wednesday that he intends to send a tariff letter to more than 150 countries, notifying them that their tariff rates could be 10% or 15%, effective August 1. Strength in US economic news on Friday is hawkish for Fed policy and limited gains in precious metals. Housing starts and building permits reports for June were better than expected. Also, the University of Michigan US July consumer sentiment index rose more than expected to a 5-month high. On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Yahoo
19 hours ago
- Business
- Yahoo
Fed's Waller Calls for July Interest Rate Cut
Key Takeaways Federal Reserve Governor Christopher Waller said policymakers should cut interest rates this month to boost a job market that looks to be weakening. Waller said tariffs are 'one-off increases' that don't cause persistent inflation and noted that the central bank shouldn't "wait until the labor market deteriorates before we cut the policy rate." His comments come as Fed officials remain divided between those who believe inflation is tame enough to justify cutting the central bank's federal funds rate versus those who are concerned that tariffs will increase price Reserve Governor Christopher Waller said U.S. policymakers should cut interest rates this month to boost a job market that that looks to be weakening. 'I believe that the Federal Open Market Committee (FOMC) should reduce our policy rate by 25 basis points at our next meeting,' Waller said in a speech hosted by the Money Marketeers of New York University, referring to the central bank's next meeting, scheduled for July 29-30. "While the labor market looks fine on the surface, once we account for expected data revisions, private-sector payroll growth is near stall speed, and other data suggest that the downside risks to the labor market have increased," he said. "With inflation near target and the upside risks to inflation limited, we should not wait until the labor market deteriorates before we cut the policy rate." Waller said tariffs are 'one-off increases' that don't cause persistent inflation and noted that he expect the economy to remain "soft" the rest of the year. Inflation, meanwhile, "at just slightly above' 2% is near the Fed's goal, he added. The Fed's dual mandate involves targeting low and stable inflation at 2% yearly while promoting maximum employment. His comments come as Fed officials remain divided between those who believe inflation is tame enough to justify cutting the central bank's influential federal funds rate versus those concerned that tariffs will increase price pressures. Inflation rose in June, up 2.7% year-over-year, according to a report released Tuesday morning by the Bureau of Labor Statistics, well above the central bank's 2% goal. 'Looking across the soft and hard data, I get a picture of a labor market on the edge,' Waller said. Citigroup analysts said Waller's views will likely gain more currency by the end of the year. 'For now, he is a dovish outlier wanting to cut rates this month, but we expect his views to become more mainstream in coming months and the Fed to resume rate cuts in September,' the analysts said. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
