Institution: The US dollar is expected to trade near 4.05-4.08 Malaysian Ringgit next week.

Kenanga economists in a report stated that they expect the US dollar to trade around 4.05 ringgit to 4.08 ringgit next week, with the risk tilted towards further appreciation of the ringgit. They predict that US inflation will soften in June due to a fall in gasoline prices, which will strengthen the reason for the Federal Reserve to maintain interest rates unchanged for a longer period, leading investors to reduce their long positions in the US dollar. Their base case assumption is that tensions between the US and Iran will be controlled and not disrupt shipping through the Strait of Hormuz. They added that investors will also be focusing on the minutes of the Federal Open Market Committee meeting for clues about the Fed's policy stance and whether the July meeting is still a "live meeting." Kenanga expects the US dollar to face resistance at 4.086 ringgit, with support at 4.061 ringgit.