Ringgit likely to trade firmer against greenback next week

KUALA LUMPUR: The ringgit is expected to trade firmer next week on easing geopolitical tensions in North Korea, amid conducive domestic monetary condition that is supportive of growth, which saw the ringgit climb to a ten-month high on Thursday at 4.1920/1970 against the US dollar from 4.2690/2720 in the previous week.

Bank Negara Malaysia (BNM) also maintained the overnight policy rate at 3.00 per cent since July 13, 2016 at its Monetary Policy Committee (MPC) meeting.

Kenanga Investment Bank Bhd said the MPC was of the view that the ringgit had strengthened and was closer to the country’s economic fundamentals.

Malaysia’s international reserves also climbed to US$100.5 billion (RM431.7 billion) as at Aug 30, 2017, compared with US$100.4 billion (RM431.0 billion) registered as at Aug 15, 2017.

Meanwhile, Oanda Asia-Pacific Trading Head, Stephen Innes, said other than that, Malaysian bond appeal was raging as foreign exchange led the charge with short-term notes getting scooped up as the ringgit carry was back in vogue.

“I’m looking at the Malaysian economy to be the spark that could ignite a deeper rally in the ringgit,” Innes told Bernama, adding that Malaysia’s stellar export data released this week continued to resonate with investors.

The local note was quoted mostly higher against other major currencies.

Based on a Friday-to-Wednesday basis due to the holiday-shortened week, the local note strengthened versus the Singapore dollar to 3.1342/1398 from 3.1482/1514 but depreciated against the Yen to 3.8919/8977 from 3.8837/8882.

The ringgit rose against the British pound to 5.5129/5203 from 5.5168/5220 and appreciated against the Euro to 5.0551/0624 from 5.1010/1063.

The market was closed on Thursday and Friday last week and Monday this week for a special public holiday. — Bernama

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