business
Ringgit likely to extend upwards next week
The ringgit was traded mostly higher for the week just-ended. It ended 4.0860/0910 on Friday against the greenback from 4.1175/1225 previously aided by improving crude oil prices. – The Malaysian Insider file pic, March 12, 2016. The ringgit is expected to extend its upward momentum next week on positive sentiment spurred by the continued increase in global oil prices, said Affin Hwang Investment Bank Vice-President/Head of Retail Research Datuk Dr Nazri Khan Adam Khan.
"The current sentiment for the ringgit is positive. With the US dollar declining and crude oil prices continuing to improve, the ringgit can increase further.
"The ringgit will likely appreciate to 3.95 in the short-term," he said.
However he said traders were cautious ahead of US Federal Reserves Open Market Committee meeting to determine the direction of interest rates.
Meanwhile, another dealer said that the Bank Negara Malaysia's move to maintain its Overnight Policy Rate (OPR) at 3.25% is expected to further boost investors appetite for the local unit.
"With the unchanged OPR, the Malaysian economy is also expected to grow at a more moderate level throughout 2016," the dealer said.
He said the European Central Bank's (ECB) decision to cut interest rates would also help the ringgit's performance next week, regain traders' confidence and boost the economic growth of 19 countries that use the euro.
The ringgit was traded mostly higher for the week just-ended.
It ended 4.0860/0910 on Friday against the greenback from 4.1175/1225 previously aided by improving crude oil prices.
The local unit rose against the Singapore dollar to 2.9656/9707 from 2.9789/9828 last Friday and strengthened versus the yen to 3.5927/5981 from 3.6191/6251 previously
It also depreciated against the euro to 4.5400/5471 from 4.5033/5104 last week and weakened against the British pound to 5.8275/8366 from 5.8209/8305 last Friday. – Bernama, March 12, 2016.
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