Ringgit likely to see range-bound trading next week

Aug 5, 2017

KUALA LUMPUR: The ringgit is expected to see range-bound trading against the US dollar next week as the local unit stabilised against the greenback, a dealer said.

Inter-Pacific Securities Head of Research, Pong Teng Siew, said the ringgit was expected to trade around 4.28 against the US dollar as the measures taken by the Bank Negara Malaysia to stabilise it against the greenback continued to reduce the volatility between the two currencies.

However, he said, while the measures were able to protect the ringgit against the US dollar, it did not protect the ringgit against the other currencies as the local unit was locked with the US dollar trend against the other currencies.

“If the US dollar weakened against the other currencies, the ringgit also weakened against other currencies,” he told Bernama.

On a Friday-to-Friday basis, the ringgit was traded lower at 4.2770/2800 against the US dollar from 4.2760/2790 in the previous week.

The local note was also traded lower against other major currencies.

It declined versus the Singapore dollar to 3.1534/1570 from 3.1471/1514 previously and weakened against the yen to 3.8857/8895 from 3.8377/8418 last Friday.

The local note fell against the British pound to 5.6264/6312 from 5.6187/6239 the previous week and depreciated against the euro to 5.0811/0864 from 5.0106/0154. –Bernama