Ringgit to extend upward momentum next week

Finance Minister Lim Guan Eng. Photo: Bernama

KUALA LUMPUR: The ringgit is expected to extend its upward momentum next week on stronger buying interest following positive global sentiment, said a dealer.

He said the continued increase in oil prices, coupled with expectations of the US Federal Reserve (Fed) putting on hold its rate tightening cycle in 2019, would improved risk appetite and boost demand.

“The dovish Fed Open Market Committee meeting minutes have also triggered the weakness in the US dollar, which worked in favour of the local note.

“The current sentiment for the ringgit is positive. With the US dollar declining and the optimism that the US and China may soon resolve their trade dispute, the local note could rise further,” he told Bernama.

He said the ringgit would likely appreciate between 4.06 and 4.08.

Meanwhile, Oanda Head of Trading Asia-Pacific Stephen Innes expects the ringgit to trade at the 4.09 level, supported by the bond market which would be issued soon.

“Malaysia will soon issue Samurai bond (a yen-denominated bond issued in Tokyo by a non-Japanese entity) and the added money is a welcome boost to the government coffers,” he told 

Bernama.

Finance Minister Lim Guan Eng was reported as saying that the government would name bankers to arrange a ¥200 billion Samurai bond sale next week. On a Friday-to-Friday basis, the local note strengthened to 4.0940/0980 from 4.1340/1370 against

the greenback.

It went up against the Singapore dollar to 3.0297/0338 from 3.0357/0395 and improved against the British pound to 5.2203/2270 versus 5.2378/2432. 

Against the Japanese yen, the ringgit jumped to 3.7785/7832 from 3.8260/8298 but eased against the euro to 4.7155/7217 from 4.7144/7199. – Bernama




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