Ringgit expected to trade lower next week

KUALA LUMPUR: The ringgit is likely to trade marginally lower next week as the US dollar is anticipated to strengthen further in the light of a better Gross Domestic Product (GDP) growth in the third quarter, said a dealer.

“I think we are in the early stages of a US dollar rally

given the USD  high correlation with regional currencies.

“I expect the ringgit to weaken next week as traders are expected to increase long positions for the greenback.”

“I suspect a test of 4.25 for the ringgit against the US dollar is on the cards next week,” said OANDA Head of Trading Asia-Pacific, Stephen Innes.

On a Friday-to-Friday basis, the ringgit was traded lower at 4.2410/2430 against the greenback from 4.2240/2260, previously.

Against other major currencies, the ringgit was traded mostly higher.

It rose against the Singapore dollar to 3.0990/0016 from 3.1057/1085 last Friday, strengthened versus the Japanese yen to 3.7189/7216 from 3.7252/7279, previously.

The ringgit was firmer vis-a-vis the euro at 4.9340/9367 from 4.9885/9922 but fell against the British pound to 5.5532/5579 from 5.5512/5555 last Friday. — Bernama

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes