KUALA LUMPUR, Feb 5 — The ringgit is expected to trade at current levels against the US dollar next week ahead of the release of Malaysia’s fourth quarter 2021 gross domestic product (Q4 2021 GDP) figures on February 11.
Hence, an analyst foresees the ringgit to experience headwinds next week, trading in a range of RM4.18-RM4.19 against the greenback.
Furthermore, he said with the latest daily Covid-19 cases breaking the 7,000-case mark for the first time this year since October 2021, the local note would continue to face pressures.
Malaysia recorded 7,324 new Covid-19 infections on Friday, February 4, an increase of 1,604 cases from the 5,720 new infections recorded on February 3.
“However, with the improved commodity prices and weaker dollar, these will cap the ringgit to trade farther lower,” he added.
For the short-trading week just ended, the local note was mostly higher, coinciding with the gains seen in the Brent crude oil price.
The market was closed on Tuesday and Wednesday for the Chinese New Year celebration.
On a weekly basis, the ringgit appreciated versus the US dollar to 4.1805/1810 from 4.1880/1915 a week ago.
However, the local currency traded lower against other major currencies on a Friday-to-Friday basis.
It depreciated against the Singapore dollar to 3.1096/1102 from 3.0860/0890 the previous Friday and weakened vis-a-vis the Japanese yen to 3.6365/6372 from 3.6222/6252.
The ringgit eased versus the euro to 4.7929/7935 from 4.6621/6660 a week earlier and fell against the British pound to 5.6721/6728 from 5.6031/6078.
— Bernama
