KUALA LUMPUR, March 6 — The ringgit performance next week will be determined by oil prices, as well as the movement of US Treasury yields, said Axi chief global market strategist Stephen Innes.
He said the US non-farm payroll, a key economic indicator for the US economy, to be announced late Friday, would influence the greenback, with a weaker dollar having a negative impact on US Treasury yields, while a higher number could complicate Joe Biden’s efforts to push a US$1.9 trillion stimulus deal.
“As US Treasury yields are a bigger factor than higher oil prices, I think we need to stay a bit cautious next week. So, I’m suggesting a range of 4.06 and 4.08 next week,” he added.
On a Friday-to-Friday basis, the ringgit fell further against the US dollar to 4.0720/0760 versus 4.0450/0443 a week earlier.
The local note was traded higher against other major currencies.
It appreciated against the Singapore dollar to 3.0359/0395 from 3.0443/0490 a week earlier, strengthened against the Japanese yen to 3.7544/7584 from 3.7985/8035.
The ringgit also inched up vis-a-vis the British pound to 5.6267/6338 from 5.6395/6473 last Friday and rose against the euro to 4.8563/8627 from 4.9054/9127.