Ringgit rally likely to continue next week

KUALA LUMPUR: The ringgit is expected to continue its rally against the US dollar next week on persistent weakness in the greenback and recovery of crude oil prices, along with steady foreign fund inflows.
A dealer said these factors would likely push the ringgit towards the level of RM3.80 versus the US dollar next week.
"We anticipated the US dollar trading to remain weak next week following the Easter long weekend (in the US), and therefore, lifting the ringgit's performance," he told Bernama.
The dealer said the recovery of crude oil prices that touched US$70,(RM270) per barrel last week, alongside the firm foreign fund inflow of RM447.1 million into Malaysia's equity market seen last week, would also continue to support the local note.
Meanwhile, OANDA Head of Trading Asia-Pacific Stephen Innes said low yield seen on the benchmark 10-year US Treasury bond would also continue to weigh on the greenback next week, prompting investors to look for ringgit-denominated Malaysian Government Securities.
"The market will be looking to re-engage US dollar short position, and this seems to be a general consensus after short covering into quarter end.
"Hence, I expect a test of the critical 3.85-level next week, and my outside range is 3.84 -3.88-level in this scenario," he added.
For the week just-ended, the ringgit traded between 3.8590 and 3.9120, mainly influenced by concerns over a US-China trade war, weak benchmark US 10-year Treasury bond yields, as well as strong crude oil prices.
On a Friday-to-Friday basis, the local note finished higher against the greenback at 3.8620/8650 from 3.9150/9200.
The ringgit was also traded firmer against a basket of major currencies.
It strengthened against the yen to 3.6369/6404 from 3.7318/7383 last Friday and appreciated against the euro to 4.7603/7659 from 4.8245/8318.
The ringgit rose vis-a-vis the British pound to 5.4246/4307 from 5.5170/5248 and advanced against the Singapore dollar to 2.9476/9511 versus 2.9756/9799. — Bernama