Ringgit to maintain rangebound trading next week

The ringgit is expected to trade similarly to this week’s narrow range pattern. — Reuters pic
The ringgit is expected to trade similarly to this week’s narrow range pattern. — Reuters pic

KUALA LUMPUR, April 21 — The ringgit is expected to trade similarly to this week’s narrow range pattern of between 3.88 and 3.91 against the US dollar next week, said a dealer. 

Oanda Head of Trading in Asia-Pacific, Stephen Innes, said some investors would likely hold on their buying interest for the local note ahead of the general election. 

“Due to the growing election sentiment and firmer US dollar on potentially higher US yields, we expect the ringgit to perhaps continue to gravitate to the upper end of that range,” Innes told Bernama.

Meanwhile, FXTM Research Analyst, Lukman Otunuga said the election risk and stabilising of the US dollar could result in further weakness in the ringgit in the near term. 

“However, losses are likely to be limited as the local note finds support from rising commodity prices. With the next trading week light on economic data, the ringgit’s trajectory could be dictated by the US dollar’s performance and oil prices.

“Overall sentiment remains bullish towards the Malaysian economy despite the building election risk, and such could lead the ringgit to appreciate further in the long term,” said Lukman. 

On a Friday-to-Friday basis, the local note weakened against the greenback to 3.8950/8000 from 3.8785/8815 last week.

The ringgit traded lower against a basket of major currencies.

It eased against the Singapore dollar to 2.9624/9665 versus 2.9573/9603 last Friday and fell against the yen to 3.6172/6229 from 3.6042/6080.

The ringgit declined vis-a-vis the British pound to 5.4779/4865 from 5.5393/5451 and declined against the euro to 4.7909/7982 from 4.7837/7878. — Bernama