Ringgit likely to appreciate further next week

KUALA LUMPUR: The ringgit is likely to appreciate next week riding on the bullish sentiment of the local stock market, recovering commodity sector coupled with continued demand, economists said.
Global oil prices, which has been on an uptrend the past week, would influence the ringgit's upward momentum, said IQI Group Chief Economist Shan Saeed.
"At present, the global benchmark crude oil price stood at US$49.48 (RM201.28) per barrel and if it trades between US$50 per barrel and US$51 per barrel, the local note will likely appreciate further to between 3.75 and 3.80 next week," he told Bernama.
Meanwhile, Dean of Business School at Malaysia University of Science and Technology Dr Yeah Kim Leng expected trading in the local currency to be confined within 3.90 and 4.00 against the US dollar.
"However, sentiment will likely remain cautious ahead of US Federal Reserve Chair Janet Yellen's comments that will give a clue on the timing of interest rate hike," he said, adding that the market will remain cautious until the announcement is made.
For the week just-ended, the ringgit traded mostly lower against the greenback.
The local unit was marginally higher at 4.0780/0840 against the US dollar on Friday from 4.0780/0850 in the previous week.
It ended mostly lower against other currencies.
The ringgit declined against the yen to 3.7171/7236 from last Friday's 3.6952/6032, and eased against the Singapore dollar to 2.9647/9706 from 2.9534/9589 previously.
It appreciated against the euro to 4.5588/5671 from 4.5751/5846 and softened against the British pound to 5.9743/9839 from 5.9421/9543 last Friday. — Bernama