Ringgit to trade at current level next week

Ringgit to trade at current level next week

KUALA LUMPUR,. The ringgit is likely to trade at the current level of 4.1280 with an upside bias against the US dollar next week as market direction would rely on the release of economic data and currency movements across emerging markets, said dealers.

FXTM Currency Strategy & Market Research Global Head, Jameel Ahmad said the notable events would be the release of US Federal Open Market Committee meeting minutes and Malaysia’s Inflation Report next week.

“There is a lower volume of tier-one economic data reports for next week. This increases the likelihood that the direction of financial market movements will continue to be dictated by external drivers. Trade war headlines and political risk will be the two likely culprits of volatility,” he told Bernama.

Meanwhile, emerging markets would be hoping that the news late this week that China had welcomed the United States’ invitation for a new round of talks would provide the needed catalyst to inspire some risk appetite back into investor’s portfolios, said Jameel.

“If positive headlines arise from these trade talks, it increases the probability that investors will be tempted back into emerging markets, meaning buying demand for the Malaysian ringgit and its regional peers would improve,” he added.

On a Friday-to-Friday basis, the local note appreciated to 4.1280/1320 against the US dollar from 4.1370/1400.

The ringgit was mostly lower against other major currencies.

It increased against the Japanese yen to 3.6609/6654 from 3.6997/6037 previously, and was lower against the euro at 4.8607/8679 from 4.8390/8446.

It weakened against the Singapore dollar to 3.0271/0304 from 3.0208/0241 and declined against the British pound to 5.4428/4501 from 5.4282/4338. — Bernama