2018 budget to fuel ringgit trading next week

October 21, 2017 | By | Reply More

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KUALA LUMPUR: The anticipation of a positive 2018 Budget, which will be tabled in Parliament on Oct 27, is likely to support the demand for the ringgit next week, dealers said.

They, however, said the newly-passed United States budget blueprint for the 2018 fiscal year would curb and limit the upside for the ringgit against the US dollar.

The Republican dominated US Senate passed the budget blueprint on Thursday, sending the greenback broadly higher against a basket of major currencies as the approval indirectly paved the way for tax cuts and legislation without the Democratic party’s support.

“This raises hope of a fiscal boost to the US economy and positively affirming the safe-haven currency,” a dealer told Bernama.

Back home, Prime Minister Datuk Seri Najib Razak is set to announce the 2018 Budget on Friday, which many economists and analysts expect would address the needs of targeted group of the Bottom 40% household income group (B40).

On a Friday-to-Friday basis, the ringgit was traded marginally lower at 4.2240/2260 against the greenback from 4.2200/2240.

Against other major currencies, the ringgit was traded firmer.

It appreciated against the Singapore dollar to 3.1057/1085 from 3.1146/1187 last Friday, strengthened versus the Japanese yen to 3.7252/7279 from 3.7638/7677 and improved against the British pound to 5.5512/5555 from 5.5995/5065.

The ringgit was firmer vis-a-vis the euro at 4.9885/9922 from 4.9918/9970 as demand for the currency weakened due to the Catalonia crisis in Spain.

The local market was closed on Wednesday for Deepavali. — Bernama

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