The ringgit is likely to be firm against the US dollar next week as confidence continues to rise over Malaysia’s improving macro-economic landscape.
Research Analyst at FXTM, Lukman Otunuga, said with the US dollar descending to new year lows as increasingly hawkish comments from central banks outside the US eroded the greenback’s allure, the ringgit was likely to remain supported moving forward.
“What may play a key role in where the ringgit concludes next week is how the markets digest the US Federal Open Market Committee meeting’s minutes and non-farm payrolls reports which could spark volatility.
“While profit-taking could be on the cards following the ringgit’s resurgence, rising oil prices may support the local currency further, ultimately limiting downside losses,” he told Bernama.
Meanwhile, senior trader at OANDA, Stephen Innes, said a softer US dollar outlook would be the primary catalyst for ringgit’s strength next week.
The Malaysian foreign exchange market were closed on June 26 and 27 for the Aidilfitri celebration.
For the just-ended holiday-shortened week, the ringgit moved between 4.2840 and 4.2920 against the US dollar, mainly influenced by the performance of crude oil prices, selling pressure of the US dollar and the improved macro-economics conditions in the country.
On a Friday-to-Friday basis, the ringgit was traded lower at 4.2920/2950 against the greenback from last Friday’s 4.2865/2895.
The local note was also traded lower against other major currencies except the yen.
It depreciated versus the Singapore dollar to 3.1181/1220 from 3.0912/0944 last week, eased against the British pound to 5.5757/5801 from 5.4537/4584 and weakened against the euro to 4.8963/8015 from 4.7880/7918 last Friday.
The ringgit was, however, better against the yen to 3.8328/8365 from 3.8541/8578. –Bernama