Ringgit likely to continue uptrend next week

KUALA LUMPUR – The ringgit is expected to continue its uptrend next week amid improving global sentiments, an analyst said.

SPI Asset Management managing director Stephen Innes said China’s reopening and continuous positive momentum should further boost the local economy, particularly the tourism and services sectors.

“The China travel frenzy should be very positive for Malaysia’s economy, while the country’s oil and gas exports should go up as China needs to restock fuels of all varieties.

“We expect the ringgit to trade range-bound at between 4.2175 and 4.2475 next week, but to get through the 4.20 threshold, economic data will need to do some of the heavy lifting, particularly a visible bump in China consumer consumption,” he told Bernama.

In the meantime, Innes noted that investors will be keeping a close watch on the Federal Open Market Committee (FOMC) policy meeting due next week for forward guidance on the interest rate hike.

“There is a chance the FOMC could surprise and lean towards the hawkish side,” he added.

The ringgit ended the holiday-shortened week higher as market sentiment improved due to domestic and global factors, coupled with rising crude oil prices.

On a week-on-week basis, the ringgit was stronger against the US dollar at 4.2410/2475 at Friday’s close versus 4.2830/2875 a week earlier.

The local note also strengthened against a basket of major currencies compared to a week earlier.

It was higher against the British pound at 5.2453/2533 from 5.2861/2916, the euro at 4.6159/6230 from 4.6393/6442, the Japanese yen at 3.2658/2711 from 3.3073/3111 and the Singapore dollar at 3.2280/2332 from 3.2386/2425. – Bernama / pic TMR File