KUALA LUMPUR, Feb 20 — The ringgit is expected to continue its positive momentum against the US dollar next week, driven by bullish outlook on the global economic development, a dealer said.
Axi chief global market strategist Stephen Innes said the rise in US yields will likely pause, which would allow the local currency market to breath a little freer.
“The Yuan has started to rally again, bouncing off three-week lows, which is generally a favourable signal for the ringgit,” he told Bernama.
Encouragingly, he said oil prices remained firm even with the US winter freeze in Texas showing signs of abating.
“Global economic data is starting to pick up in contrast to the weak US employment report suggesting the US is a long way from a recovery.
“Commodity prices appear to be doing well, so I would expect the ringgit to trade on a more favourable note provided US yields stop pushing higher, which is likely, given the weaker employment data,” he said, adding, the local currency may test the 4.0350 level next week.
On a Thursday-to-Friday basis, the ringgit was higher against the US dollar at 4.0380/0430 versus 4.0405/0445 last Friday.
The local note was traded mostly higher against other major currencies.
It appreciated against the Singapore dollar to 3.0489/0534 from 3.0499/0531 a week earlier, and strengthened against the Japanese yen to 3.8315/8366 from 3.8602/8644.
The ringgit fell vis-a-vis the British pound to 5.6488/6566 from 5.5896/5964 a week earlier but was higher against the euro to 4.8993/9062 from 4.9003/9068 previously.
— Bernama
