Kenanga: The US dollar against the Malaysian Ringgit is expected to trade in the 3.96-4.00 range next week, with sentiment dominated by geopolitical factors and oil prices.

(1) Kenanga economists stated that due to fragile geopolitical negotiations and high oil prices, market sentiment remains cautious, and the US dollar is expected to trade against the ringgit in the 3.96 to 4.00 range next week. (2) Persistent inflation concerns and strong US Treasury yields continue to support the US dollar; the ringgit is highly sensitive to developments in the Middle East and potential repricing risks from the Federal Reserve. (3) Investors will focus on the progress of the 60-day US-Iran ceasefire extension and US labor market data. Due to energy-driven inflation risks, the market still expects the Federal Reserve to favor tightening. Kenanga expects the US dollar resistance level to be 3.987 ringgit and the support level to be 3.944 ringgit.