KUALA LUMPUR, Feb 27 – The ringgit is likely to see range-bound trading next with the currency moving between 3.59 and 3.60 against the US dollar in the absence of fresh leads and lack of appetite. “If there’s a genuine demand especially from fund managers in the equity market, then the ringgit will strengthen,” said a dealer, adding that the ringgit was quite cheap now,” he told Bernama.
However, the market tone remained cautious as expectations that the US Federal Reserve will increase interest rates was looming over sentiment. For the week just-ended, the local currency traded mixed as the greenback strenghtened during the Chinese New Year holidays in Asia and continued its momentum on expectation of a US interest rate hike in June. On a weekly-basis, the ringgit rose to 3.6030/5050 against last Wednesday’s 3.6180/6230 and appreciated against other major currencies.
It appreciated against the Singapore dollar to 2.6532/6562 from 2.6597/6653 and strengthened against the yen to 3.0204/0223 from 3.0363/0407. The local unit was higher against the euro at 4.0418/0448 from last Wednesday’s 4.1267/1335 and increased against the pound to 5.5436/5481 from 5.5580/5671.