KUALA LUMPUR – The ringgit is expected to ease slightly against the US dollar next week, amid subdued demand ahead of the long holiday break, said an analyst.
Axi chief global market strategist Stephen Innes said improving risk sentiment and higher oil prices should see the local currency trade more favourably, but activities should be light as traders move into full-bore holiday mode.
He said weaker US economic data and the pound sterling’s repricing higher on the back of hopes of a pre-holiday Brexit deal saw the US dollar traded broadly lower.
“The local market was influenced mainly by external factors, particularly the Brexit deal and Covid-19 vaccine developments,” he told Bernama.
The local market was closed yesterday for Christmas, and will resume trading on Monday.
On a Friday-to-Thursday basis, the ringgit was lower against the US dollar at 4.0590/0620 versus 4.0375/0415 the previous week.
It also traded easier against other major currencies.
It fell against the Singapore dollar to 3.0537/0571 on Thursday from 3.0389/0428 on Friday last week, and dropped against the British pound to 5.5186/5243 from 5.4474/4540.
It eased versus the euro to 4.9479/9528 from 4.9451/9512, and depreciated vis-a-vis the Japanese yen to 3.9153/9193 from 3.8983/8029. – Bernama, December 26, 2020
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