Economist Kenanga: Ringgit may trade in the 3.94-3.98 range in the short term, with geopolitical situation and oil prices in focus

(1) Kenanga economists noted in a report that the Malaysian ringgit may trade in the range of 3.94-3.98 ringgit per US dollar in the near term, until the outlook for the duration of the Middle East conflict becomes clearer. Currently, the US dollar is quoted at 3.9485 ringgit, up 0.1%. (2) The report stated that it may be too early to expect a rapid de-escalation of the Middle East situation, and the market remains highly focused on crude oil price trends and their potential impact on US inflation and Federal Reserve policy. (3) Economists further pointed out that although Malaysia may gain short-term benefits from rising oil prices, the ringgit no longer trades like a traditional oil-linked currency, but rather tends to fluctuate as a high-beta emerging market currency. (4) On the technical side, Kenanga expects the US dollar to face resistance at 3.956 ringgit and find support at 3.934 ringgit against the ringgit in the short term.