KUALA LUMPUR, Nov 4 – The ringgit is likely to ease against the US dollar next week on growing optimism over an interest rate hike in the United States next month. Affin Hwang Investment Bank Vice-President and Head of Retail Research, Datuk Dr Nazri Khan Adam Khan said the ringgit was expected to a see continuous bouts of foreign fund selling until the anticipated rate hike became true.
“The sentiment is expected to continue in the short-term … Not just (for the) ringgit but regional currencies such as the Singapore dollar and Indonesian rupiah will also be affected,” he told Bernama. He said in the long term, however, the ringgit was expected to gradually recover driven by, among others, the improving oil price.
“The ringgit is undervalued. Eventually, it will catch up to its fair level because of the improving oil price,” he said. On a Friday-to-Friday basis, the ringgit was traded higher against the greenback at 4.2340/4370 from 4.2410/2430, previously. Against other major currencies, the ringgit was traded mostly higher from the previous Friday.
It fell against the Singapore dollar to 3.1093/1122 from 3.0990/0016 but strengthened versus the Japanese yen to 3.7088/7128 from 3.7189/7216. The ringgit was firmer vis-a-vis the euro at 4.9309/9357 from 4.9340/9367 and advanced against the British pound to 5.5326/5382 from 5.5532/5579. — Bernama