KUALA LUMPUR: The ringgit is expected to be volatile against the US dollar next week amid the inconsistent global oil prices and commodity prices, although Malaysia’s moderate inflation rate will cushion the impact on the ringgit, a trader said.
“At the moment, the local note has broken the 4.07 psychology level, so it is expected to trade lower next week,” Affin Hwang Investment Bank Vice-President/Head of Retail Research Datuk Dr Nazri Khan Adam Khan told Bernama.
Meanwhile, Hong Leong Bank in a note maintained a slight bullish outlook on the ringgit versus the greenback due to a retreat in risk appetite.
“Despite the likelihood of an extended retreat in risk appetite, we opine that risk aversion in the dollar going into the Federal Open Market Committee (FOMC) meeting and US Gross Domestic Product report would provide support to the ringgit.
“Downbeat US reports along the way would drive the dollar lower,” it said. In the upcoming week, there will be another round of FOMC meetings to determine the interest rate coupled with the release of the US GDP report for the second quarter.
The ringgit was traded lower throughout the week just ended.
On a Friday-to-Friday basis, the local unit was weaker at 4.0535/0595 against the US dollar from 3.9450/9500 in the previous week.
The ringgit also ended lower against other currencies.
It dropped against the Singapore dollar to 2.9891/9937 from 2.9335/9381, inched down versus the yen to 3.8223/8290 from 3.7242/7306 and eased vis-a-vis the euro to 4.4686/4768 from 4.3935/3007 previously.
Against the British pound, the ringgit depreciated to 5.3194/3281 from 5.2918/2009. – Bernama