Ringgit expected to trade 4.07-4.10 against the US dollar next week

KUALA LUMPUR, May 1 (Bernama): The ringgit is expected to witness cautious trading against the greenback next week on the possibility of higher 10-year United States (US) Treasury yields, which will likely increase the risk appetite for the US dollar, an analyst said.

"Assuming that no surprises emerge from the US data this week, I expect the ringgit/US dollar to continue moving between 4.09 and then 4.07 level next week,” OANDA senior market analyst for Asia Pacific, Jeffrey Halley, told Bernama.

However, ActivTrades trader Dyogenes Rodrigues Diniz said during the week, as the US Federal Reserve kept its interest rate unchanged and the Federal Open Market Committee provided some direction on the US economy, more stimulus and money printing were expected to take place, in order to support its economic growth.

"This could mean the continuation of the downward trend in the US dollar against the ringgit,” he said.

Technically, Dyogenes said traders would focus on the 4.1050 level, where an upward breakout may show an important buying entry point in the coming week.

"A break below 4.0930 could be seen as a continuation of the selling pressure on the US dollar and the next target would be at around 4.0750,” he added.

Besides that, another trader said the firmer oil prices would also lift the ringgit due to their close correlation.

During the week, benchmark Brent crude was moving above the US$60 level, at US$65-US$68 per barrel.

On a Friday-to-Friday basis, the ringgit strengthened versus the US dollar to 4.0870/0930 from 4.1080/1130 a week earlier.

The local note was higher against other major currencies.

It rose against the Singapore dollar to 3.0785/0839 from 3.0936/0978 a week earlier and strengthen against the Japanese yen to 3.7520/7581 from 3.8069/8119.

The ringgit gained vis-a-vis the British pound to 5.6834/6930 from 5.7007/7093 last Friday and increased against the euro to 4.9428/9509 from 4.9522/9595 a week ago. - Bernama

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3

Next In Aseanplus News

Emerging markets: Indonesia stocks fall 2% on virus surge, yields hit two-month high
Digital nomads flee virus-hit Manila for shattered tourist towns
Thailand to further ease restaurant dine-in restrictions despite high case tally
Vietnam urges WHO to accelerate COVAX drive as country's Covid-19 cases hit record numbers
US journalist held in Myanmar appears in special court
Cambodia: 30, 000 bottles of dong quai wine destroyed after seven killed; major drug bust by cops
Laos Covid-19 taskforce reports virus continues to be transmitted through close contacts of patients
A showcase of digital technology in Brunei
Garuda puts off debt payment again as it faces funding crunch
Vietnam introduces nationwide code of conduct for social media

Stories You'll Enjoy