Kuala lumpur: The ringgit is expected to trade between RM4.02 and RM4.04 against the US dollar next week as investors remain cautious amid prevailing geopolitical uncertainties.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid indicated that the ongoing stalemate in the United States-Iran negotiations could sustain elevated fuel prices, subsequently applying higher inflationary pressure. He noted that this environment might lead to discussions on global interest rate hikes gaining momentum, which could result in cautious trading within the currency markets.

Mohd Afzanizam further highlighted that domestic political developments, particularly the upcoming state elections in Johor and Negeri Sembilan, could also contribute to the cautious sentiment observed among investors. On a Friday-to-Friday basis, the ringgit concluded lower at 4.0280/0320 against the US dollar, compared to 3.9625/9670 the previous week.

Throughout the week, the local currency traded lower against a basket of major currencies. It depreciated against the British pound, eased versus the Japanese yen, and weakened against the euro. Additionally, the ringgit also traded lower against ASEAN currencies, sliding against the Indonesian rupiah, easing vis-a-vis the Singapore dollar, slipping against the Thai baht, and declining against the Philippine peso.