Ringgit to trade between 4.06-4.10 against US dollar next week
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KUALA LUMPUR, Dec 16 — The ringgit is likely to remain muted against the US dollar next week, as the foreign exchange market is expected to be subdued as it entered the holiday season.
OANDA Head of Trading Asia-Pacific Stephen Innes said the ringgit is expected to be traded between 4.06 and 4.10 next week, with the US dollar rallies quickly fading.
“Given that we are entering the holiday season, liquidity conditions are absent for any surprises, it will likely trade on a lighter note,” he told Bernama.
For the week just ended, the ringgit traded between 4.0690/0720 and 4.0850/0880, with the local note hitting an intra-day high of 4.0690/0720 against the US dollar on Wednesday.
It was lifted by encouraging October trade data, expectation of Bank Negara Malaysia’s interest rate hike in January next year, firm crude oil prices, and positive spillover from the Federal Reserve’s interest rate increase last Wednesday.
However, the local note tapered off its strength thereafter, as profit-taking emerged and with the Christmas holiday around the corner, traders would be winding down.
On a Friday to Friday basis, the ringgit was higher against the greenback at 4.0780/0810 compared with 4.0870/0890 the previous week.
Against a basket of currencies, the local note traded lower, except against the pound.
It declined against the Singapore dollar to 3.0286/0313 from 3.0191/0217, traded lower against the yen to 3.6359/6389 from 3.5983/6011, and depreciated against the euro to 4.8100/8152 from 4.7961/7997.
However, it traded higher against the pound at 5.4763/4816 from 5.5076/5107 previously. — Bernama