Ringgit likely to increase against US dollar next week

KUALA LUMPUR: The ringgit is likely to trend higher against the US dollar next week as sentiment towards the Britain exit (Brexit) referendum gradually improved.
Affin Hwang Investment Bank Vice-President/ Head of Retail Research, Datuk Dr Nazri Khan Adam Khan, said the impact of Brexit may not be ugly as expected as the United Kingdom (UK) would take at least two years to sort out its exit from the European Union (EU).
"We expect the ringgit to improve next week as long as the politicians in the EU and UK manage the Brexit fallout smoothly.
"Traders will also have a close look out for major central banks including European Central Bank, Bank of England and Bank of Japan hoping for more stimulus to further cushion their respective economies from potential Brexit fallout," he told Bernama.
For the week just-ended, the ringgit was traded mostly higher against the US dollar driven by improved Brexit sentiment and higher oil prices.
On a Friday-to-Friday basis, the local unit was higher at 3.9960/9010 against the US dollar from 4.0850/0950 in the previous week.
It also ended higher against other currencies.
The ringgit was up against the Singapore dollar to 2.9710/9769 from last week's 3.0148/0246 and rose against the yen to 3.8955/8034 from the previous week's 3.9668/9777.
The local note appreciated against the British pound to 5.3147/3241 from 5.6806/6961 previously and rose against the euro to 4.4376/4455 from 4.5450/5573 last Friday.— Bernama