Latest news with #Stephen Innes
Malay Mail
4 days 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
Malay Mail
6 days ago
- Business
- Malay Mail
Ringgit dips amid ongoing concerns over US tariffs and Fed leadership
KUALA LUMPUR, July 17 — The ringgit slipped further against the greenback on Thursday on continued uncertainty about US tariffs. At 6pm, the local note dipped to 4.2465/2510 from 4.2400/2490 on Wednesday's close. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said market participants remained anxious about how US tariffs will impact the global economy. 'US President Donald Trump has indicated that 150-plus countries will be notified about their respective tariff rates, which could be in the region of 10 to 15 per cent. At the same time, Trump also denied news on the possible termination of the current US Federal Reserve (Fed) chairman Jerome Powell. Market participants remain anxious about how the US tariffs will (play out),' he told Bernama. SPI Asset Management managing partner Stephen Innes said the markets were earlier jolted on the news regarding the fate of the Fed chairman, stirring concerns of a direct assault on the US central bank's independence. 'That sparked a knee-jerk selloff of the US dollar and a brief bid into gold, but the move quickly reversed after Trump's (denial of a plan to fire Powell),' he added. On the ringgit, Innes said that while regional currencies broadly struggled today, the sentiment on the ringgit soured further due to Malaysia's current trade standing with the United States. 'Unlike Indonesia, which recently inked a deal to reduce tariffs and deepen bilateral trade ties, Malaysia has made little visible progress on that front. That comparative stagnation is starting to bite, especially with global investors scrutinising who's in Washington's good books heading into a volatile period with the Aug 1 tariff deadline looming,' he added. At the close, the ringgit traded higher against a basket of major currencies. It was up versus the euro at 4.9217/9269 from 4.9248/9352 at yesterday's close but retreated against the British pound to 5.6886/6946 from 5.6786/6907 and declined against the Japanese yen to 2.8548/8580 from 2.8508/8569. The local note also trended mostly higher against ASEAN currencies. It inched up against the Indonesian rupiah to 259.8/260.2 from 260.3/260.9 and strengthened versus the Philippine peso to 7.41/7.43 from 7.43/7.45. The ringgit fell against the Thai baht to 13.0521/0720 from 13.0301/0630 and traded down vis-à-vis the Singapore dollar to 3.3013/3051 from 3.2999/3071.— Bernama
