The ringgit is likely to continue its downtrend against the US dollar next week in anticipation of weaker crude oil prices coupled with the US Federal Reserve’s (Fed) hawkish stance on a interest rate hike, says a dealer.
Inter-Pacific Research Sdn Bhd Head of Research Pong Teng Siew said crude oil prices were expected to remain weak weighed down by oversupply, which would have an impact on the local note.
“Besides, the Fed has publicly announced that it intends to raise interest rates at least once more in the second half of the year.
“This would affect the short-term yield for the ringgit,” he told Bernama.
Pong noted that the market was also expected to remain quiet as most traders would be away for the Hari Raya holidays.
The Malaysian foreign exchange market will be closed on June 26 and 27 for the festive holidays.
For the week just-ended, the ringgit moved between 4.2760 and 4.2860 against the US dollar, mainly influenced by the performance of crude oil prices the US Federal Open Market Committee’s hawkish view on interest rates.
On a Friday-to-Friday basis, the ringgit traded lower at 4.2865/2895 against the greenback from last Friday’s 4.2740/2790.
The local note also traded lower against other major currencies.
It depreciated versus the Singapore dollar to 3.0912/0944 from 3.0893/0933 last week and fell against the yen to 3.8541/8578 from 3.8394/8442.
The ringgit eased against the British pound to 5.4537/4584 from 5.4549/4617 and weakened against the euro to 4.7880/7918 from 4.7741/7801 last Friday. –Bernama