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Ringgit likely to be lower against greenback next week

by September 3, 2016 General

A money changer counts ringgit at a shop in Putrajaya, outside Kuala Lumpur. — Reuters picA money changer counts ringgit at a shop in Putrajaya, outside Kuala Lumpur. — Reuters picKUALA LUMPUR, Sept 3 — The ringgit is expected to be lower against the US dollar next week, given the persistent subdued consumer sentiment, depressed crude oil prices and an expectation that the US Federal Reserve (Fed) would raise interest rates.

Affin Hwang Investment Bank Vice-President/Retail Research Head Datuk Dr Nazri Khan Adam Khan said traders remained cautious over the possible Fed rate hike this year.

“The rising expectations of the Fed raising US interest rates has also led to continous concerns over the health of the global economy,” he told Bernama.

Meanwhile, FXTM Research Analyst Lukman Otunuga said West Texas Intermediate (WTI) descended towards a three-week low at US$44.60 yesterday as persistent concerns over an excessive oversupply of oil in the global markets haunted investor attraction towards the commodity.

“It is becoming increasingly clear that investors have digested the oversupply reality, with the fading optimism over Opec securing a freeze deal in September’s informal meeting, enticing sellers to attack further,” he said.

On a Friday-to-Friday basis, the local note fell against the greenback to 4.0830/0900 from 4.0130/0200.

Against other currencies, the ringgit ended mostly lower, except the yen.

The ringgit slid against the Singapore dollar to 3.0018/0080 from 2.9669/9729 last Friday, but appreciated against the yen to 3.9411/9498 from 3.9942/1024, and fell against the euro to 4.5640/5734 from 4.5299/5414.

It weakened against the British pound to 5.4161/3262 from last Friday’s 5.2956/3056. — Bernama