Ringgit to see range-bound trading with upside bias next week

May 13, 2017

The ringgit will see range-bound trading next week and move between 4.30 and 4.35 against the US dollar with an upside bias, on expectation of encouraging economic data, said an economist.

MIDF Amanah Investment Bank Bhd Chief Economist Kamaruddin Mohd Nor said the market expected good first quarter Gross Domestic Product (GDP) numbers to be announced on May 19.

“We anticipate the first quarter GDP figure to exceed five per cent for Malaysia, which would be above our annual average growth projection for 2017 of 4.9%.

“With the nation’s trade data performance also moving up coupled with a recovery in energy prices, we expect the ringgit to be well supported, ” he told Bernama.

Meanwhile, Hong Leong Research maintained a bearish outlook for the ringgit against US dollar next week, mostly due to anticipation of continued recovery in the greenback after the recent slump, and to a lesser extent, risk aversion ahead of Malaysia GDP report,” said the research firm.

For the week just-ended, the ringgit moved between 4.3350 and 4.3460 against the US dollar.

On a Friday-to-Friday basis, the ringgit was traded lower at 4.3440/3470 against the greenback from 4.3350/3400 last week.

It ended mostly higher against other major currencies, except the Singapore dollar.

The local note advanced against the yen to 3.8213/8246 from 3.8616/8671 last Friday, rose against the British pound to 5.5859/5902 from 5.6052/6129 and was higher against the euro at 4.7232/7269 from 4.7490/7562 previously .

It, however, eased against the Singapore dollar to 3.0859/0900 from 3.0856/0896 recorded last week. –Bernama