Ringgit to trade steadily against the us dollar between 4.18-4.20 next week

KUALA LUMPUR: The ringgit is expected to trade steadily against the US dollar within the 4.18 - 4.20 range next week, following news that the Malaysian government bonds are staying on index provider FTSE Russell’s watchlist.

On Friday, FTSE Russell announced that Malaysia remains on its benchmark World Government Bond Index (WGBI), along with China.

Axi Trader Asia-Pacific market strategist Stephen Innes said as the ringgit was traded sideways last week tracking the Chinese yuan’s performance, the news would be supportive to the local note’s performance in the coming week.

“The (ringgit) outlook looks relative stable next week with China heading for a long National Day holiday (Oct 1-7),“ he said.

Meanwhile, in an email to Bernama, FXTM market analyst Han Tan said Malaysia’s economic resilience - as evidenced by the 4.7% year-on-year growth in gross domestic product in the first half of 2019 - had weathered the current external headwinds.

“For the week ahead, a break above 4.20 for US dollar- ringgit should be met, with stiffer resistance at 4.23, while the 4.16 range continues to act as the near-term support level,“ he said.

For the week just ended, the local note was mostly lower throughout the week, mainly influenced by the uncertainties in the United States-China trade talks, weakening crude oil prices as well as FTSE Russell’s decision to review the Malaysian government bonds’ participation in the WGBI.

The ringgit ended the week lower at 4.1860/1900 against the greenback from 4.1680/1720 on Friday last week.

The local currency, however, traded mostly higher against most other major currencies, except the yen.

It strengthened against the Singapore dollar to 3.0292/0325 from 3.0297/0337, increased versus the euro to 4.5732/5793 from 4.6040/6.101 and surged against the pound to 5.1433/1499 from 5.2196/2254.

Vis-a-vis the yen, the local unit fell to 3.8774/8818 from 3.8589/8637 previously. - Bernama

source https://www.thesundaily.my/business/ringgit-to-trade-steadily-against-the-us-dollar-between-4-18-4-20-next-week-FX1426979