Ringgit to trade around current level next week

Oct 7, 2017

KUALA LUMPUR: The ringgit is likely to trade around current level next week amid mixed market sentiment, mostly influenced by external development, dealers said.

The local note, which recently rose following an upward economic growth forecast for Malaysia projected by the World Bank, edged down on a stronger dollar due to the stronger-than-expected US services activities, indicating the strength of the US economy, a dealer said.

Meanwhile, FXTM research analyst Lukman Otunuga said the dollar clawed back some of its losses after better-than- expected US data supported expectations of a US interest rate hike before year-end.

“Sentiment towards the US economy received another boost on Wednesday after the Non-Manufacturing Purchasing Manager Index came in at 59.8 in September, the highest reading since August 2005.

“With growth in the US service sector hitting a 12-year high last month, the outlook for the US economy continues to look encouraging for the second half of 2017,” he said.

On a Friday-to-Thursday basis, the ringgit was traded lower at 4.2360/2390 against the greenback from 4.2190/2220 last week.

It appreciated against the Singapore dollar to 3.0999/0039 from 3.1063/1097 on Friday and slipped versus the yen to 3.7500/7533 from 3.7499/7532.

Against the euro, the ringgit was slightly higher at 4.9574/9626 from 4.9788/9828 and vis-a-vis the pound, it rose to 5.5326/5378 from 5.6425/6482. –Bernama