KUALA LUMPUR (BERNAMA) – The Malaysian ringgit is likely to trade between the 4.165 and 4.185 level, influenced by external factors, with the greenback general direction and oil prices expected to drive sentiment again, said an analyst.
AxiCorp chief global market strategist Stephen Innes said the United States (US) dollar is unlikely to turn significantly bullish as traders may reduce their exposure to the greenback.
“I would expect some consolidation as traders will look at improving domestic and regional economic backdrop for support. The 4.17-level remains solid support. So, I would look for trade around 4.165 to 4.185,” he told Bernama.
The ringgit was traded higher early last week, reaching a five-month high last Wednesday as the greenback continued to lose ground amid record-low interest rates.
However, the local unit fell against the US dollar last Friday due to profit-taking activities.
The US Federal Reserve released its minutes for the July meeting which emphasised on the need for ongoing economic support in late July as the COVID-19 pandemic dragged on, keeping millions of workers at home and threatening the US economic growth.
The Federal Open Market Committee will convene its next meeting on September 15 and 16.
On a Friday-to-Friday basis, the ringgit was broadly higher against the US dollar at 4.1780/1800 from 4.1910/1950 in the previous week.
However, the Malaysian ringgit was traded mixed against major currencies.
It fell against the yen to 3.9561/9583 from 3.9260/9308 a week earlier but appreciated against the euro at 4.9355/9383 from 4.9416/9472 previously.
Vis-a-vis the Singapore dollar, the local unit slid to 3.0528/0553 from 3.0518/0554 and eased against the pound to 5.5012/5046 from 5.4785/4854 previously.