The dollar is expected to trade around 4.05 ringgit to 4.08 ringgit next week, with risks tilted toward further ringgit appreciation, Kenanga economists say in a note. They expect softer U.S. June inflation, helped by lower gasoline prices, to reinforce the case for the Fed to keep interest rates on hold for an extended period, prompting investors to reduce long dollar positions. Their baseline outlook assumes U.S.-Iran tensions stay contained, without disruptions to shipping through the Strait of Hormuz. Investors will also focus on the FOMC minutes for clues on the Fed's policy stance and whether the July meeting remains a "live meeting," they add. Kenanga expects the dollar to face resistance at 4.086 ringgit, with support at 4.061 ringgit. The dollar is 0.3% lower at 4.0660 ringgit. (yingxian.wong@wsj.com)
Dow Jones Newswires
Dollar Likely to Trade Around 4.05-4.08 Ringgit Next Week — Market Talk
The dollar is expected to trade around 4.05 ringgit to 4.08 ringgit next week, with risks tilted toward further ringgit appreciation, Kenanga economists say in a note. They expect softer U.S. June inflation, helped by lower gasoline prices, to reinforce the case for the Fed to keep interest rates o…