The ringgit will likely be on an uptrend next week, supported by the country’s better-than-expected exports data.
Forextime Ltd Vice-President for Corporate Development and Market Research Jameel Ahmad said the 24% higher exports for March 2017, over the same month earlier, would provide more encouragement to support the view that the ringgit was oversold, given the country’s economic standpoint.
“What this data represents is an excellent economic performance and the Malaysian economy is displaying its robust nature,” he said in a note.
The International Trade and Industry Ministry announced on Friday that the country’s exports surged to a record high in March, up 24%, from a year earlier, to RM82.63 billion, underpinned by higher demand for manufactured goods, which accounted for 81% of total exports.
While heightened expectations of further interest rates hikes by the Federal Reserve would dampen demand for the local note, another dealer said it would not be as bad as envisaged as the factor would have already been ‘priced in’ by now.
For the week just-ended, the ringgit moved between 4.3350 and 4.3170 against the US dollar.
On a Friday-to-Friday basis, the ringgit was traded higher at 4.3350/3400 against the greenback from 4.3390/3430 last week. It ended mostly higher against other major currencies.
The local note improved against the Singapore dollar to 3.0856/0896 from 3.1088/1121 last week and advanced against the yen to 3.8616/8671 from 3.8911/8958 last Friday.
It rose against the British pound to 5.6052/6129 from 5.6129/6198 previously but was marginally lower against the euro at 4.7490/7562 from 4.7456/7508 recorded last week. –Bernama