Ringgit to trend higher against US dollar next week

KUALA LUMPUR: The ringgit is likely to trend higher against the US dollar next week on rebounding commodity prices and amid the weaker greenback.
OANDA Corp Head of Trading for Asia Pacific, Stephen Innes said the weaker greenback, in general, was supporting demand for the ringgit, but higher oil prices would also add shine to it.
Crude oil prices strengthened amid a suggestion Saudi Arabia's Minister of Energy, Industry and Mineral Resources, Khalid A Al-Falih that OPEC's current production cuts remain intact,
"I think the US dollar will slide further next week as the market will gradually focus on the expanding US dual deficits (trade and budget), which is a huge currency negatve for the US dollar in an inflationary environment.
"So, I am expecting the ringgit to trade between the 3.87 and 3.91 range against the US dollar next week with a stronger bias due to the negative US dollar outlook," he told Bernama.
The US dollar fell against a basket of currencies on Friday on persistent selling activities despite stronger-than-expected inflation data and an increase in interest-rate expectations.
Meanwhile, the US West Texas Intermediate Light Sweet Crude Oil Futures rose 0.68 per cent to US$61.01 per barrel.
The market was closed on Friday for the Chinese New Year celebration.
On a Thursday-to-Friday basis, the local note finished at 3.8910/8980 against the greenback from 3.9370/9410 in the previous week.
The ringgit was, however, mixed against a basket of major currencies.
It fell against the Singapore dollar to 2.9659/9724 from 2.9604/9643 and depreciated against the yen to 3.6559/6635 from 3.6096/6143 last week.
The local unit also went down against the euro to 4.8583/8678 from 4.8279/8344, but strengthened against the British pound to 5.4704/4818 from 5.4795/4859. — Bernama