Kuala Lumpur: The ringgit is projected to trade between 4.41 and 4.42 against the US dollar next week, according to an analyst. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid pointed out that the tremor from the United States tariff shock would continue to reverberate, leading traders and investors to adopt a defensive stance.

According to BERNAMA News Agency, Dr Mohd Afzanizam noted that market participants will be seeking more clues on whether the US Federal Reserve (Fed) will ease monetary policy beyond the half-point cut indicated in their March projection. He added that the US Consumer Price Index (CPI) for March, due for release on Thursday, will be closely scrutinized. Currently, the support and resistance levels for the ringgit-US dollar stand at 4.3634 and 4.4463, respectively.

Meanwhile, SPI Asset Management managing director Stephen Innes expects the ringgit to move around 4.42 to 4.45 versus the greenback next week. He highlighted that China's deflation pressures are expected to take center stage, with the release of CPI and Producer Price Index (PPI) figures. Innes warned that if these numbers confirm sluggish domestic demand, it could negatively impact regional risk sentiment and spill over to the ringgit.

Innes also advised keeping a close watch on the Bank of Japan, which is expected to maintain its current stance. If the bank adopts a more dovish tone on the global outlook, it could lead to ripple effects across Asia, potentially signaling regional interest rate cuts and weighing on local currencies. He further mentioned that potential trade concessions for Malaysia could stabilize sentiment, but emphasized that China's economic policies will be pivotal for regional currencies.

For the holiday-shortened week, the local currency ended slightly lower at 4.4335/4400 against the greenback, compared to 4.4330/4355 the previous week. Additionally, the ringgit traded lower against other major currencies at yesterday's close, sliding against the Japanese yen, euro, and British pound.

The ringgit also showed mixed performance against ASEAN currencies, depreciating versus the Singapore dollar and Philippine peso, while appreciating against the Thai baht and Indonesian rupiah. Markets were closed on Monday and Tuesday in observance of the Hari Raya Aidilfitri holidays.