KUALA LUMPUR, July 14 — The ringgit is expected to strengthen to the 4.0 level next week on improved oil prices, said Hermana Capital Bhd Chief Executive Officer and Chief Investment Officer Datuk Nazri Khan Adam Khan.
He said if oil price rise were to continue, not only the ringgit but also other currencies would get a boost, with oil being one of the country’s main sources of revenue.
Hong Leong Investment Bank Bhd (HLIB) also expects a slight bullish bias in the local note against the US dollar next week, anticipating easing of trade tensions to support continued recovery in risk appetite.
“Technically, USD-MYR continues to show upside fatigue after failure to break the 4.0515 level this week.
“As such, we maintain the view that a retracement to recent rally is still in the works, potentially sliding lower to 4.0047 going forward,” it said in a note.
HLIB said it suspected the US dollar might lose upside traction next week as trade tensions appeared to be easing, while a lack of major US data would unlikely catch sufficient attention to drive buying interest.
On a Friday-to-Friday basis, the local note finished lower against the greenback at 4.0500/0530 from 4.0380/0420.
The ringgit was traded higher against a basket of major currencies.
It appreciated against the Singapore dollar to 2.9620/9651 versus 2.9672/9712 last Friday and rose against the yen to 3.6006/6043 from 3.6497/6536.
The ringgit improved against the pound to 5.3189/3236 from 5.3419/3476 and advanced against the euro to 4.7122/7161 from 4.7277/7340. — Bernama