KUALA LUMPUR, Aug 11 — The ringgit is likely to trend lower against the US dollar next week on continued downward pressure driven by external concerns, an analyst said.
FXTM Global Head of Currency Strategy and Market Research Jameel Ahmad said investors sentiment would likely be influenced by trade war concerns and geopolitical uncertainty.
He said this followed the US’ move to impose sanctions on Russia on accusation of using biochemical weapon after already re-imposing economic sanctions on Iran, while Turkey could be also be on the agenda of the US President Donald Trump administration.
“All of these factors combined do paint a picture that investors’ risk appetite could remain limited for some time,” he told Bernama.
He said if these external factors continued to dominate market attention, the ringgit could weaken to RM4.10 against the greenback in the upcoming weeks as the local unit remained sensitive to these factors.
For the week just-ended, the ringgit traded rangebound on lack of catalyst amid continuous tension on global trade.
The sentiment was further dampened by US sanctions of Russia on accusation of using biochemical weapon and re-introduction of sanctions on Iran.
On a Friday-to-Friday basis, the local note depreciated to 4.0830/0870 against the greenback from 4.0800/0850 in the preceding week.
Against other major currencies, the ringgit also decreased against the Singapore dollar to 2.9781/9813 from 2.9770/9813 and fell against the yen to 3.6800/6846 from 3.6523/6574.
The local unit rose against the British pound to 5.2193/2248 from 5.3064/3146 in the previous week and strengthened against the euro to 4.6779/6837 from 4.7222/7292. — Bernama