Ringgit to trade higher against us dollar next week

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KUALA LUMPUR: The ringgit is expected to trade higher, averaging between 4.42 and 4.43 next week, supported by expectations that the US Federal Reserve will not raise interest rates next month.

A dealer said the release of the dovish-than-expected Fed’s meeting minutes on Wednesday did little to boost expectations of an interest rate hike in March, and would likely continue to weigh on the US dollar.

“Furthermore, sentiment towards the greenback was also hurt by the perceived lack of progress and uncertainties over the US tax reform,” he added.

Meanwhile, Bank Negara Malaysia’s international reserves remained unchanged at US$95 billion (RM426.2 billion) as at Feb 15, 2017 compared with Jan 31, 2017.

The central bank said this was sufficient to finance 8.4 months of retained imports and was 1.1 times the short-term external debt.

For the week just-ended, the ringgit moved between 4.4370 and 4.4560 against the US dollar.

On a Friday-to-Friday basis, the ringgit was traded higher at 4.4370/4440 against the greenback from last Friday’s 4.4510/4550.

Against other major currencies, the local note traded mostly lower except the euro.

The ringgit depreciated versus the Singapore dollar to 3.1612/1666 from 3.1416/1451 last week, decreased against the yen to 3.9440/9513 from 3.9417/9463 and the British pound to 5.5622/5719 from 5.5273/5336.

It rose against the euro to 4.7001/7084 from 4.7372/7428. — Bernama


Read the original story on: TheSunDaily.My