KUALA LUMPUR: The ringgit will likely trade higher against the greenback next week on expectations of higher commodities prices after the Brent crude oil price edged up from its 11-year lows on Wednesday.
A dealer said commodities prices were due for a bounce soon given the unexpected decline in US inventories, indicating potential for exports in an oil market which suffered from oversupply.
Brent crude oil, the global benchmark, rose 39 cents to US$36.50 a barrel on Wednesday while the US West Texas Intermediate crude oil futures was up by 33 cents at US$36.47 per barrel.
"The higher oil price will give breathing space for producing countries such as Malaysia and ease the pressure on its shrinking oil and gas revenue," he added.
Furthermore, he said, an interest rate hike by the Federal Reserve, which finally took place last week (Dec 16), had lifted one major uncertainty factor in the market.
For the holiday-shortened week, the ringgit depreciated to 4.3070/3136 against the greenback on Wednesday from 4.2870/2940 recorded last Friday.
It also fell against the Singapore dollar to 3.0609/0660 from 3.0344/0400 and declined to 3.5589/5647 from 3.5342/5414.
The ringgit went down against the euro to 4.7024/7100 from 4.6415/6495 but strengthened against the British pound to 6.3890/3997 from 6.4039/4161.
The local market was closed on Thursday and Friday for the Maulidur Rasul and Christmas holidays respectively. - Bernama
