KUALA LUMPUR, May 23 (Bernama): The ringgit is expected to fall between 4.12 and 4.16 against the US dollar this week given the pressure of the rising COVID-19 cases in the country and the absence positive catalysts.
Jeffrey Halley, senior market analyst at OANDA, said that while the US dollar also weakens, the ringgit is likely to be influenced more by sentiment and short-term fund flows than by data performance.
With that in mind, the outlook for the ringgit depends a lot on developments in COVID-19 and oil prices. Oil prices still appear to be able to correct downwards, especially if a deal between the United States and Iran is made. officially announced.
“This will offset any benefits the ringgit might receive from a weaker US dollar in general as inflation concerns temporarily take a back seat,” he told Bernama.
Meanwhile, ActivTrades trader Dyogenes Rodrigues Diniz said that after hitting the 4.1470 level, the US dollar has started to pull back against the ringgit and is now showing initial selling pressure.
This, he said, is due to the Malaysian Consumer Price Index (CPI), which has been lower than expected.
“Malaysian inflation fears have been around since the last reading of the CPI, which went from negative ground (deflation) to the highest figure in four years (4.7% vs. 4.9% as the market planned).
From a technical point of view, if the ringgit / US dollar price goes below 4.1350, it could fluctuate to 4.1220. On the other hand, if the price manages to break above 4.1500, it could move to the 4.1700 level, ”Diniz said.
On a weekly basis, the ringgit weakened against the US dollar to 4.1390 / 1430 from 4.1230 / 1280 a week earlier.
The local rating was also lower against other major currencies.
It moved lower against the Singapore dollar at 3.1099 / 1141 from 3.1023 / 1073 a week earlier and declined against the yen at 3.8074 / 8118 from 3.7909 / 7966.
The ringgit slipped against the pound to 5.8832 / 8897 from 5.8279 / 8353 on Friday last week and dipped against the euro to 5.0595 / 0656 from 5.0028 / 0102. – Bernama