Ringgit to trade sideways against US dollar next week

: The ringgit is likely to trade sideways with a downside bias against the next week, a dealer said.

MIDF Amanah Investment Bank Chief Economist Dr Kamaruddin Mohd Nor said the ringgit movement was influenced by the strengthening US dollar amid the US- trade tensions over the past few months.

“Nevertheless, we expect the ringgit to have a breather next week with a target trading range of between 4.08 and 4.10.

brought about by the new deals surrounding the North American Free Trade Agreement, favourable commodity prices, and expectation of good external trade numbers which is due next week could lend support for the local currency,” he told Bernama.

Meanwhile, Oanda Head of Trading Asia- Stephen Innes said the ringgit remained in buy on dips mode as most of the speculative action was dollar buying.

“The traders stay on sidelines ahead of the Bank Negara ’s Monetary Policy Committee (MPC) meeting on Sept 5, awaiting market direction. A dovish MPC statement could see a knee-jerk demand for greenback,” he said.

On a Thursday-to-Friday basis, the local note fell to 4.1080/1110 against the greenback from 4.1070/1100 last week.

Against other major currencies, the ringgit traded mostly lower, except against the Japanese yen, where it rose to 3.6820/6863 from 3.6851/6887 last week.

It declined against the dollar to 3.0073/1100 from 2.9950/9980, fell against the British pound to 5.3462/3525 from 5.2668/2723 and was lower against the euro at 4.8055/8099 from 4.7502/7553.

The market was closed yesterday for the Merdeka Day celebration. — Bernama

Source: The Sun Daily

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