Ringgit to trade at current level next week

September 15, 2018 | By | Reply More

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KUALA LUMPUR: The ringgit is likely to trade at the current level of between 4.130 and 4.150 against the US dollar next week with market sentiment poised to remain driven by global trade developments and movements across emerging markets, said dealers.

OANDA Head of Trading in Asia Pacific Stephen Innes said the market would be cautious given that much of the risk revival hinged on possible US-China trade talks aimed at de-escalating the trade friction between the two economies.

“On the positive front, the placid US Consumer Price Index does take a bit of pressure off local currencies as the US dollar bulls will not be so aggressive. But overall, I do not expect the reprieve to be lasting.

“I view the recent currency price action as more of a short covering rally than new money coming into the markets. As such, I think US dollar dips will remain bid, so I anticipate 4.13 US dollar/ringgit could be a bridge too far or provide solid support,” he told Bernama.

The ringgit traded rangebound in the holiday-shortened week amid a quiet market. The market was closed on Monday and Tuesday for King’s birthday and Awal Muharram respectively.

The market will be closed again on Monday for Malaysia Day.

On a Friday-to-Friday basis, the local note appreciated to 4.1370/1400 against the US dollar from 4.1435/1465.

The ringgit was mostly lower against other major currencies.

It increased against the Japanese yen at 3.6997/6037 from 3.7406/7444 previously, but was lower against the euro at 4.8390/8446 from 4.8210/8257.

It weakened against the Singapore dollar to 3.0208/0241 from 3.0139/0163 and declined against the British pound to 5.4282/4338 from 5.3725/3768. — Bernama

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