KUALA LUMPUR, Oct 10 — The ringgit is expected to trade range-bound with an upside bias next week, said a dealer
FXTM market analyst Han Tan said US political shenanigans surrounding the next round of fiscal stimulus were expected to be the primary driver of global risk sentiment.
“Shifting market expectations surrounding the next stimulus package could likely move broad asset classes, including global equities and the dollar/Asia complex.
“The spectre of domestic political uncertainty may weigh on the ringgit’s performance over the near term. However, such pressures should prove transitory once there is more certainty surrounding Malaysia’s policy outlook,” he told Bernama today.
The ringgit/greenback pair had put in a stable performance this week, sticking to a tight range within the 4.145-4.165 level, he said.
For the onshore economic calendar, Han said Malaysia’s August industrial production was expected to register a 0.2 per cent year-on-year increase.
“However, a better-than-expected reading could buffer support for the ringgit, even as the currency remains primarily influenced by extraneous factors,” he said.
Technically, for the week ahead, Han said the US dollar versus the ringgit’s 100-day moving average was set to cross below its 200-day counterpart, affirming the ringgit’s gains against the greenback while potentially paving the way for the ringgit to strengthen further.
On a Friday-to-Friday basis, the ringgit rose against the US dollar to 4.1320/1400 from 4.1620/1660 in the previous week.
The ringgit improved against the Singapore dollar to 3.0474/0542 from 3.0502/0543 on Friday last week and increased versus the yen to 3.9014/9101 from 3.9582/9631.
The local unit strengthened vis-a-vis the British pound to 5.3456/3576 from 5.3748/3821 and traded higher against the euro at 4.8741/8840 from 4.8766/8830 previously. — Bernama
