By Nurul Hanis Izmir
KUALA LUMPUR, Dec 2 (Bernama) — The ringgit is expected to continue stabilising and hovering between the 4.0700 and 4.1100 levels against the US dollar next week, said Oanda Corp Head of Trading for Asia Pacific, Stephen Innes.
He said the market would likely enter a consolidation phase and investor optimism may wane due to the holiday season.
“We see some thin liquidity creeping into the picture, which is a bit earlier than usual. and the rising US yields present the most significant obstacle to a stronger ringgit next week.So, investors will continue to monitor the US yield curve in earnest.
“The US yield curve is very much range bound and we would need a sustained break of 2.4 per cent in the 10-year US treasuries to push the greenback significantly higher,” he told Bernama.
However, Innes noted that this is unlikely to happen, unless there are some definite signs of inflation picking up in the US.
He also said oil prices appear to be moving in the right direction and provided there’s no significant sell off, it would play favourably to the ringgit.
For the holiday-shortened week, the local note was traded mostly higher against the US dollar as the greenback was stuck near a two-month low, pending the announcement of the US tax reform plan and confirmation of the new Federal Reserve chair.
The market was closed on Friday for the Maulidur Rasul holiday.
On a Thursday-to-Friday basis, the ringgit strengthened against the US dollar to 4.0875/0915 from 4.1155/1185 last Friday.
Against other major currencies, the local unit rose against the Singapore dollar to 3.0278/0328 from 3.0553/0584, fell against the British pound to 5.5001/5072 from 5.4839/4895, appreciated versus the Japanese yen to 3.6379/6424 from 3.6927/6964 and improved vis-a-vis the euro to 4.8355/8419 from 4.8835/8887.
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