KUALA LUMPUR – The ringgit is likely to trade higher against the US dollar next week as the greenback is expected to continue its downtrend, said a dealer.
ActivTrades trader Dyogenes Rodrigues Diniz said the US dollar/ringgit resumed its downtrend that had been in place since last year and would likely stay intact as all signals point to a devaluation of the US dollar against the ringgit.
“From a macroeconomic stance, the US Federal Reserve is not concerned about inflation at all and this is likely to be the direction for a while. If everything remains as it is now, it is just a matter of time before the ringgit reaches the 4.10 level against the US dollar.
“At its current pace, the ringgit/US dollar could reach the 4.10-level next week,” he said.
In the week just ended, the ringgit was traded mostly higher against the US dollar influenced by the movement of oil prices and lower US Treasury yields.
On a Friday-to-Friday basis, the ringgit strengthened versus the US dollar to 4.1080/1130 from 4.1250/1290 a week earlier.
The local note was lower against other major currencies.
It fell against the Singapore dollar to 3.0936/0978 from 3.0929/0964 a week earlier and weakened against the Japanese yen to 3.8069/8119 from 3.7903/7943.
The ringgit eased vis-a-vis the British pound to 5.7007/7093 from 5.6834/6898 last Friday and declined against the euro to 4.9522/9595 from 4.9405/9465 a week ago. – Bernama, April 24, 2021
