Ringgit to trade firmer against US dollar next week on buying support

Apr 29, 2017

The ringgit is likely to trade firmer on improved buying support against the US dollar next week, moreso, if the greenback loses steam over US President Donald Trump’s policies.

OANDA Senior Trader Stephen Innes said the positioning of investors for the ringgit is light amid the oil market’s balancing act of striving to remain at front and centre.

He said the risk of weaker oil prices remains during the course of the year due to constant supply from shale oil producers.

“Next week could also offer some challenges with the US Federal Open Market Committee meeting. With so much priced out of US Federal Reserve (Fed) policy this year, the only real surprise in my view would be a more hawkish lean from it than what the market expects.

“But, with the likelihood of only two US rate increases this year, I do not think this will pose too much of concern to local sentiment and in particular, the Malaysian capital market, which is arguably undervalued compared to its Asean counterparts,” said Innes.

For the week just-ended, the ringgit traded higher and moved between 4.3690 and 4.3390 against the US dollar.

On a Friday-to-Friday basis, the ringgit was also traded higher at 4.3390/3430 against the greenback from 4.3980/4000 last week. It ended mostly higher against other major currencies.

The local note improved against the Singapore dollar at 3.1088/1121 from 3.1466/1485 last week and advanced against the yen to 3.8911/8958 from 4.0286/0315.

It rose against the British pound to 5.6129/6198 from 5.6259/6298 last Friday, but declined against the euro at 4.7456/7508 from 4.7076/7111. –Bernama

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