Ringgit likely to trade marginally lower against US dollar

Oct 28, 2017

KUALA LUMPUR: The ringgit is likely to trade marginally lower next week as the US dollar is anticipated to strengthen further in the light of a better Gross Domestic Product (GDP) growth in the third quarter, said a dealer.

“I think we are in the early stages of a US dollar rally, given the high correlation with regional currencies.

“I expect the ringgit to weaken next week as traders are expected to increase long positions for the greenback.

“I suspect a test of 4.25 for the ringgit against the US dollar is on the cards next week,” said OANDA Head of Trading Asia-Pacific, Stephen Innes.

On a Friday-to-Friday basis, the ringgit was traded lower at 4.2410/2430 against the greenback from 4.2240/2260, previously .

Against other major currencies, the ringgit was traded mostly higher.

It rose against the Singapore dollar to 3.0990/0016 from 3.1057/1085 last Friday, strengthened versus the Japanese yen to 3.7189/7216 from 3.7252/7279, previously.

The ringgit was firmer vis-a-vis the euro at 4.9340/9367 from 4.9885/9922 but fell against the British pound to 5.5532/5579 from 5.5512/5555 last Friday. –Bernama