KUALA LUMPUR, April 25 — Kenanga Investment Bank Bhd expects the ringgit to rebound and appreciate by 0.9 per cent to 4.286 against the US dollar this week.
“Inversely, a break above the 4.350 level may signal a continuation of the US dollar’s bullish run,” it said in a note today. “The ringgit breached the 4.30 threshold for the first time since June 2020 as the US dollar index climbed above the 101.0 level due to weak global economic sentiment as the United States Federal Reserve chair Jerome Powell hinted that a 50 basis points hike in May is ‘on the table’.
For this week, it said the DXY is expected to remain strong and consolidate around the 100.0 level while the Chinese yuan may continue to remain weak near the 6.50 threshold -- a combination that may continue to pressure most Asian currencies, including the ringgit.