Ringgit likely to trade firmer against greenback next week

Sep 2, 2017

KUALA LUMPUR: The ringgit is expected to trade firmer at the level of 4.25 against the US dollar next week, in view of improving commodity prices and easing geopolitical tensions in North Korea.

Affin Hwang Investment Bank Vice-President and Head of Retail Research, Datuk Nazri Khan Adam Khan said the supply disruption in Texas, Colombia and Libya recently, would lift global crude oil prices to a higher level last week.

“The increase has supported the ringgit, as Malaysia, being a net exporter of crude oil and petroleum products, is heavily reliant on the price movement of this commodity,” he told Bernama.

Meanwhile, Nazri Khan said subsiding missile launch fears by North Korea would also affect the local note’s performance.

“Demand for currencies, including the ringgit will increase, as investors’ risk appetite improves as their worries over a missile launch fades,” he added.

Nazri Khan also revealed that a greater foreign money inflow to the emerging markets, including Malaysia was seen since last week, after the Jackson Hole symposium in the United States concluded on Aug 26.

“Investors remained clueless on the US Federal Reserve (Fed) interest rate direction as Chair, Janet Yellen did not talk about the issue at the annual event,” he said.

For the holiday shortened week, the ringgit traded higher at 4.2690/2720 against the US dollar from 4.2710/2740 in the previous week.

The local note, however, was quoted mostly lower against other major currencies.

It weakened versus the Singapore dollar to 3.1482/1514 from 3.1397/1426, fell against the British pound to 5.5168/5220 from 5.4801/4844, depreciated against the euro to 5.1010/1063 from 5.0411/0455, but appreciated against the yen to 3.8837/8882 from 3.8980/8011.

The market was closed for the Merdeka Day and Hari Raya Aidiladha celebrations on Thursday and Friday. –Bernama