KUALA LUMPUR – The ringgit is expected to trade easier against the US dollar next week, moving between 4.43-4.44, or even lower, said an analyst.
He said trading of the local currency would be influenced by the global economic conditions, including any move or announcement by US President Donald Trump.
“The US dollar has been trading on an uptrend, especially after the US announced its wages data. The ringgit could weaken further on promises of tax reform by Trump to support the US economy.
“Following Trump’s tax plan pledge, the greenback rose to one/one-and-a-half-week high versus the yen. It also traded higher against the euro,” the dealer said.
However, with the recent positive trade data announced by the Malaysian government, traders were cautiously optimistic that it will provide support to the ringgit.
Last week, the Ministry of the International Trade and Industry said Malaysia’s total trade for 2016 grew 1.5%, reaching up to RM1.49 trillion from RM1.46 trillion in 2015.
The trade figure is expected to grow 2.7 per cent this year due to moderate pick-up in global trade and higher commodity prices.
For the week just-ended, the ringgit moved between 4.4250 and 4.4420 against the US dollar.
On a Friday-to-Friday basis, the ringgit was traded lower at 4.4420/4470 against the greenback from last Friday’s 4.4260/4300.
The local note ended higher against other major currencies, except the British pound.
The ringgit appreciated versus the Singapore dollar to 3.1235/1277 from 3.1292/1330, increased against the yen to 3.9081/9129 from 3.9123/9165 and strengthened against the euro to 4.7263/7334 from 4.7535/7600.