KUALA LUMPUR: The ringgit is likely to remain stable against the US dollar next week, supported by the positive spillover effect from the bullish October trade data and gross domestic product forecast released last week.
Oanda Corp Head of Trading for Asia Pacific, Stephen Innes said the ringgit is expected to be traded between 4.06 and 4.11 next week, despite the greenback continuing to strengthen.
“The ringgit should have a bit more room to rally as the real domestic and external positive sentiments should outweigh speculative wagers on the US dollar,” he told Bernama.
Data released by the Ministry of International Trade and Industry showed Malaysia’s total trade in October 2017 surged 19.8 per cent, year-on-year (y-o-y) to RM154.26 billion, with exports rising 18.9 per cent to RM82.41 billion.
RHB Research Institute has also forecast for the country’s Gross Domestic Product to grow by 5.2 per cent for 2018 and 5.6 per cent for this year.
For the week just-ended, the ringgit traded between 4.0480 and 4.0870, with the local note hitting an intra-day high of 4.0470 against the US dollar on Tuesday - a level last seen on Aug 29, 2016.
It was lifted by positive sentiments such as bullish export data for October, firm crude oil prices, expectation of an Overnight Policy Rate hike in January and higher foreign buying of equities.
However, the local note subsided thereafter, as profit-taking and speculative plays kicked in.
On a Thursday to Friday basis, the ringgit was slightly higher against the greenback at 4.0870/0890 compared with 4.0875/0915 in the previous week.
Against a basket of major currencies, it traded mostly higher, except against the pound.
It rose against the Singapore dollar to 3.0191/0217 from 3.0278/0328 on last Thursday, advanced against the yen to 3.5983/6011 from 3.6379/6424 and appreciated against the euro to 4.7961/7997 from 4.8355/8419 previously.
The local note traded lower against the pound at 5.5076/5107 from 5.5001/5072 on last Thursday. - Bernama