The ringgit is likely to trend higher next week, trading between 4.59 and 4.62 against the US dollar, on improved market sentiments, an analyst said.
UOB Kay Hian Wealth Advisors Sdn Bhd head of wealth research and advisor Mohd Sedek Jantan said forex volatility remained at year highs in the third quarter and might rise further.
“However, ringgit volatility is much lower in comparison to other currencies in the region. Currency volatility, ringgit stood at 6.7 per cent, Singapore dollar (7.2 per cent), Indonesia rupiah (10.1 per cent) and Thai baht (10.3 per cent),” he told Bernama.
Mohd Sedek said Budget 2023 is also scheduled to be tabled on October 7 and historical data showed that ringgit tend to close lower during budget week.
“However, we believe that for the time being, US dollar strength has peaked and ringgit against the US dollar is expected to consolidate and trade between 4.60 and 4.64.
“British pound weakness appears to have peaked for now. The rapidly improving upward momentum suggests that pound could continue to rise and ringgit is expected to trade between 5.19 and 5.23 versus pound next week,” he added.
For the week just ended, the local currency traded mostly lower against the US dollar on weak sentiments dragged down by uncertainties such as global recession fears and an energy crisis in Europe.
On Friday, the ringgit fell against the greenback to 4.6360/6390 compared with 4.5775/5800 a week earlier.
On a Friday-to-Friday basis, the local note also traded easier versus a basket of major currencies.
It depreciated against the Singapore dollar to 3.2343/2368 from 3.2130/2152 previously and declined vis-a-vis the Japanese yen to 3.2103/2126 from 3.2091/2113.
The ringgit also weakened versus the British pound to 5.1728/1762 against 5.0957/0985 last week and fell against the euro to 4.5428/5458 from 4.4686/4710 a week earlier. — BERNAMA