KUALA LUMPUR: The ringgit is expected to see cautious trading against the US dollar next week with investors wary over US President Donald Trump’s economic policies, said an analyst.
FXTM Vice President of Corporate Development and Market Research Jameel Ahmad said currencies, including the ringgit, had been on recovery mode following another round of investors unwinding their positions on the greenback.
“As long as the US dollar continues to weaken in line with Trump’s comments that the US dollar is overvalued, the ringgit can continue to slowly recover,” he told Bernama.
Another dealer said the market would also be sensitive to the US gross domestic product fourth quarter data released on Friday.
For the week just ended, the ringgit moved between 4.4260 and 4.4980 against the US dollar as the market is adjusting to Trump’s policies.
On Friday-to-Friday basis, the ringgit was traded higher at 4.4300/4330 against the greenback from last Friday’s 4.4450/4480.
The local note ended mixed against other major currencies.
The ringgit appreciated versus the Singapore dollar to 3.1046/1078 from 3.1112/1135 and increased against the yen to 3.8522/8565 from 3.8619/8648.
It declined against the euro at 4.7370/7411 from 4.7321/7358 and weakened against the British pound to 5.5588/5643 from 5.4625/4679. — Bernama