The ringgit is expected to maintain its strength against the US dollar with an upside bias next week on the back of firmer global oil prices, a research house said.
FXTM Corporate Development/Market Research Vice President, Jameel Ahmad said the ringgit would find support following the decision by the Organisation of the Petroleum Exporting Countries to extend production cut agreement by another nine months, which should support risk appetite and emerging market currencies.
“I expect the local note’s performance to remain tilted towards a further gradual recovery against the greenback,” he told Bernama today, adding it was partially because the expected US interest rate rise next month had already been priced into the financial markets by most accounts.
“Another element that would help the ringgit is the dovish undertone from the US central bank which encouraged investors to second guess the longer-term US interest rate outlook,” said Jameel.
For the week just-ended, the ringgit moved between 4.2670 and 4.3350 against the US dollar.
On a Friday-to-Friday basis, the ringgit was traded higher at 4.3440/3470 against the greenback from 4.3180/3230 last week.
The local note ended higher against other major currencies for the week.
It rose against the Singapore dollar to 3.0844/0886 from 3.1056/1114 last Friday and improved versus the Japanese yen to 3.8452/8496 from 3.8723/8782 previously.
The local unit appreciated against the British pound to 5.4912/4955 from 5.6177/6247 previously and strengthened vis-a-vis the euro to 4.7859/7897 from 4.8176/8245 last Friday. –Bernama