RM expected to trade between 4.00 and 4.10 against USD next week

The ringgit is likely to trade between 4.00 and 4.10 against the US dollar next week, driven by the performance on Bursa Malaysia.

A dealer said the ringgit was expected to strengthen gradually in the medium term and could possibly swing momentarily to below 4.00 against the greenback in the event of any large capital market activity.

Meanwhile, Affin Hwang Investment Bank Vice-President/Head of Retail Research Datuk Dr Nazri Khan Adam Khan said the ringgit was expected to strengthen further next week. More inflows of foreign funds were expected to flood the local bourse next week and this could translate to more demand for the local currency, he told Bernama.

For the week just ended, the ringgit trended higher earlier in the week and managed to breach below 4.00 against the greenback, nearing a seven-month high on Wednesday as demand emerged among foreign institutional players but gains were pared later in the week on profit taking.

It ended at 4.0330/0410 on Friday against the greenback from 4.0500/0560 in the previous week.

The local unit gained against the Singapore dollar to 2.9408/9477 from the previous Friday’s 2.9801/9865 and improved versus the yen to 3.5697/5777 from 3.6395/4658.

It also advanced against the British pound to 5.6990/7124 from 5.8381/8475 previously, and appreciated against the euro to 4.5020/5118 from 4.5611/5695. --BERNAMA