KUALA LUMPUR: The ringgit is likely to trade in range-bound mode next week, as investor sentiment is still buffeted by global factors such as the US-China trade negotiations and concerns over the slowing global growth.
FXTM research analyst Lukman Otunuga said the local note would also perform in line with other emerging market currencies against the US dollar next week, mostly fluctuating within the 4.07- 4.09 range against the greenback.
“Next week, the US dollar’s performance may be influenced by the US Federal Reserve chair Jerome Powell’s speeches, which would potentially offer more clues on the US monetary policy,” he told Bernama.
In addition, Otunuga said, investors were keeping a close eye on the US’ fourth-quarter 2018 gross domestic product data to be released on Feb 28.
“The data is expected to give markets a clearer picture of the US economy, following recent weaker-than-expected data for durable goods and home sales,” he added.
For the week just ended, the ringgit closed mostly higher against the greenback, with market sentiment being supported by the improved risk-appetite following investor optimism over the US-China trade negotiations outcome, firmer crude oil prices and positive market sentiment in the country.
The upbeat factors pushed the local unit to climb to 4.0640/0700 against the US dollar on Wednesday, the highest level reached since Aug 1, 2018.
On a Friday-to-Friday basis, the ringgit was higher at 4.0760/0810 against the US dollar from 4.0870/0900 in the previous week.
It also appreciated against the Japanese yen to 3.6770/6825 from 3.7013/7050 last Friday.
However, the local currency eased against the Singapore dollar to 3.0119/0165 from 3.0082/0116, weakened against the euro to 4.6214/6287 from 4.6110/6152 and fell, vis-a-vis the British pound, to 5.3065/3135 from 5.2354/2409 previously. – Bernama
