Ringgit likely to trade lower against greenback

Sep 23, 2017

KUALA LUMPUR: The ringgit will likely trade lower against the US dollar next week in hovering between 4.20 and 4.23 following the US Federal Reserve’s (Fed) hawkish announcement on Wednesday.

Affin Hwang Investment Bank Vice-President and Head of Retail Research, Datuk Nazri Khan Adam Khan said the local note, in line with other Asian currencies, would consolidate in reacting to among others, the Fed’s US$4.5 trillion (RM18.81 trillion) balance sheet trimming in October and an unchanged interest rate.

“The announcement has lifted the greenback, signalling an improved US economy. While the interest rate was kept at the current one per cent, the Federal Open Market Committee members at the recent two-day meeting, did indicate a possible rate hike this year,” he told Bernama.

However, he added, declining geopolitical pressures and slightly higher oil prices would cap losses in the local note.

For the week just-ended, the ringgit moved between 4.1860 and 4.1960 against the dollar, impacted by geopolitical issues and mainly involving North Korea, as well as the performance of the US economy.

On a Thursday-to-Friday basis, the ringgit was traded at 4.1960/1000 against the greenback from 4.1880/1910 last week.

It appreciated against the Singapore dollar to 3.1052/1090 from 3.1128/1614 on Friday and improved versus the yen to 3.7308/7353 from 3.7648/7685.

Against the euro, the ringgit was slightly higher at 4.9987/9039 from 4.9988/9041 and vis-a-vis the pound, appreciated to 5.6617/6679 from 5.6873/6926.

The market was closed on Friday for the Awal Muharram holiday. –Bernama