Ringgit to trend higher against US dollar next week

February 24, 2018 | By | Reply More

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KUALA LUMPUR: The ringgit is likely to trend higher with a positive undertone against the US dollar next week as traders take a pessimistic stance towards US interest rates.

Oanda Corp Head of Trading for Asia Pacific, Stephen Innes said rising US interest rates and the markets growing sensitivity to local economic data presents some near-term challenges for the ringgit.

“Ultimately we believe that US rates are in the process of topping, but until we get a definitive signal from the new Federal Reserve Chair, Jerome Powell, and hopefully, next week, we should expect offshore flows to remain light in the short run,” he told Bernama.

“Longer-term investors should continue to look for opportunistic levels to re-engage long ringgit posting,” he added.

Meanwhile, the benchmark Brent crude was traded 0.44% lower at US$65.82 (RM258) per barrel.

On a Friday-to-Thursday basis, the local note finished lower at 3.9170/9200 against the greenback from 3.8910/8980 in the previous week.

The ringgit was, however, mixed against a basket of major currencies.

It rose against the Singapore dollar to 2.9607/9639 from 2.9659/9724, but depreciated against the yen to 3.6642/6677 from 3.6559/6635 last week.

The local unit went up against the euro to 4.8203/8255 from 4.8583/8678, but was marginally lower against the British pound at 5.4705/4762 from 5.4704/4818. — Bernama

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