Kuala Lumpur, November 25 – The optimism of the new unity administration and its soon-to-be-announced cabinet makeup will continue to affect the ringgit’s path over the coming week.
According to Kenanga Investment Bank Bhd, this would also be encouraged by the optimism of China’s fresh stimulus measures and less hawkish Fed minutes.
Nonetheless, the research group added that the US Dollar Index Chart (DXY) may continue to hang around the 106 level because of fading dovish pivot expectations and global recession worries. The ringgit gained almost 1.3% week-on-week (WoW) against the US dollar on November 24 as the DXY fell below the 106 level, boosted by indications from the Federal Open Market Committee (FOMC) minutes.
Furthermore, the ringgit was bolstered by prospects of Chinese stimulus and confidence from the breaking of the post-15th General Elections (GE15) gridlock with the selection of Datuk Seri Anwar Ibrahim as Malaysia’s 10th Prime Minister, according to Kenanga.
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