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Ringgit to strengthen further against US dollar

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by December 23, 2017 General

The ringgit spend most of the week within tight range ahead of the extended weekend and holiday season. — Reuters picThe ringgit spend most of the week within tight range ahead of the extended weekend and holiday season. — Reuters picKUALA LUMPUR, Dec 23 — The ringgit is expected to strengthen further next week amid the likelihood of interest rate hike in early 2018, said dealers.

Maybank Investment Bank Bhd Chartist Nik Ihsan Raja Abdullah said the ringgit would strengthen against the greenback in the near term, possibly revisiting its recent level at 4.0400 in the next few weeks, driven by expectations of interest rate hike by Bank Negara Malaysia early next year.

Higher interest rates increase the value of a currency and attract foreign investment.

“Medium-term technical target can be peg at 4.00-level (against the US dollar),” Nik Ihsan told Bernama.

The ringgit spend most of the week within tight range ahead of the extended weekend and holiday season.

Upper resistance remained strong in line with overall weakening US dollar despite staging a mild recovery this week of 0.1 per cent.

On a Friday-to-Friday basis, the ringgit was higher against the greenback at 4.0770/0800 versus 4.0780/0810 in the previous week.

The local note was traded mixed against a basket of currencies.

It traded higher against the yen at 3.5965/5998 against 3.6359/6389 and appreciated against the pound at 5.4587/5639 from 5.4763/4816 previously.

The ringgit declined against the Singapore dollar to 3.0317/0346 from 3.0286/0313 and depreciated against the euro to 4.8304/8344 from 4.8100/8152.  — Bernama

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