KUALA LUMPUR, June 27 ― The ringgit is expected to trade in an upward trajectory next week, riding on favourable market risk and improved oil prices, said AxiCorp global chief market strategist Stephen Innes.
He said the ringgit would move between 4.27 and 4.30 against the US dollar next week amid better inflows of foreign direct investment into the country as international multinationals were diversifying their production bases from China to new destinations.
“The US multinationals will likely look to diversify away from China but remain within Asia where Taiwan, Malaysia, Thailand and Vietnam could be the big winners.
“Plus, the Statistics Department’s call for Malaysia to realign its focus towards investments in high-potential industries such as healthcare, medical supplies and pharmaceuticals will be interesting to the market and attract more foreign investments into the country in these fields.
“This is a specific area of concern for the US, as a large amount of the medical supplies are made in China,” he told Bernama.
The ringgit ended slightly lower against the greenback to 4.2890/2930 yesterday from 4.2670/2730 recorded a week earlier.
On a weekly basis, the local currency decreased against the Singapore dollar to 3.0827/0865 from 3.0614/0662 and weakened versus the Japanese yen to 4.0114/0155 from 3.9897/9964.
The ringgit fell against the British pound to 5.3124/3190 from 5.2983/3075 on the previous Friday and depreciated vis-a-vis the euro to 4.8118/8167 from 4.7854/7926 previously. ― Bernama
