KUALA LUMPUR, June 20 — The ringgit is expected to be on an uptrend next week on better demand as traders cut bearish bets on the US dollar.
A dealer said the dollar might see a further correction after the Federal Reserve (Fed) lowered its economic growth outlook for 2015 and reduced the federal funds rate forecast.
“This can potentially mean that the Fed may not raise interest rates in the near-term,” he added.
Meanwhile, Bank Negara Malaysia reiterated that Malaysia had high monetary and financial stability to boost the Ringgit and support sustainable economic growth.
The central bank also said the current ringgit’s softening is part of the currency cycle, and therefore, not consistent with the country’s strong fundamentals.
On a Friday-to-Friday basis, the ringgit was sharply higher at 3.7430/7460 against the US dollar from 3.7580/7610.
Against other major currencies, the ringgit was lower, depreciating against the Singapore dollar to 2.7985/8018 from 2.7806/7843 and weakened versus the yen to 3.0428/0460 from 3.0368/0399 previously.
The local currency declined against the British pound to 5.9327/9385 from 5.8166/8235 and eased against the euro to 4.2345/2382 from 4.1962/1007. — Bernama
