Ringgit likely to be volatile next week

KUALA LUMPUR: The ringgit is expected to be volatile against the US dollar next week amid the upbeat outlook for Malaysia's economic fundamentals versus favourable sentiment skewed towards US economy.
Several local dealers said they expected the local currency to trade between 3.65 and 3.70 next week amid better risk sentiment locally versus questionable timing of the US monetary policy normalisation.
The ringgit also received a positive boost from Bank Negara Malaysia Governor, Tan Sri Dr Zeti Akhtar Aziz, this month, when she the ringgit was "significantly undervalued" and did not reflect Malaysia's current fundamentals which are still strong.
The ringgit was traded around 3.70 to the US dollar when she said that on March 11, a dealer said.
"Technically, the ringgit is also likely to trend stronger next week against the US dollar with the 3.65 suport level expected to be tested, and the 3.60 level remains as the crucial support if the greenback fails to strengthened next week," another dealer told Bernama.
On a weekly basis, the ringgit was traded stronger against the US dollar at 3.6830/6870 from last Friday's 3.7255/0285.
It, however, ended the week lower against other major currencies except against the British pound It weakened against the Singapore dollar to 2.6844/6883 from 2.6825/6849 last Friday and edged down against the yen at 3.0830/0874 from 3.0802/0837 last week.
The local note strengthened against the British pound to 5.4586/4663 from 5.4932/4988 last week. It inched down against the euro to 3.9854/9901 versus 3.9811/9858 last Friday. – Bernama