KUALA LUMPUR – The ringgit is expected to rebound slightly against the United States dollar next week, riding on improved market sentiment backed by potentially higher global oil prices.
“Given its strong relationship with oil prices, there is a strong potential for the ringgit to appreciate to between RM4.12 and RM4.13 against the US dollar next week,” Bank Islam Malaysia Bhd economist Adam Mohamed Rahim told Bernama.
“However, any further negative development regarding the sanctions imposed on China by the West could exert downward pressure on the ringgit.”
Oil prices rebounded yesterday following a deep plunge a day earlier on concerns that a large container ship that ran aground in the Suez Canal could block the vital shipping lane for a week, squeezing supply to the global market.
As at press time, the benchmark Brent crude rose by 2% to US$63.19 (RM262) per barrel.
For the just-ended week, the local note recorded a five-day losing streak as risk appetite was influenced by higher US bond yields, renewed concern over US-China trade relations, Covid-19 lockdowns in Europe, and caution over global growth recovery.
On a Friday-to-Friday basis, the ringgit depreciated versus the greenback to 4.1445/1485 from 4.1050/1100.
It also traded easier against other major currencies.
The currency fell against the Singapore dollar to 3.0778/0814 from 3.0564/0603 a week earlier, and weakened against the Japanese yen to 3.7853/7900 from 3.7712/7762.
It decreased marginally against the British pound to 5.7153/7224 from 5.7150/7228, and contracted against the euro to 4.8872/8927 from 4.8813/8884. – Bernama, March 27, 2021
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