Ringgit seen traded higher next week
The ringgit is likely to trade higher against the greenback next week as concerns over the US dollar may push more investors to move out of the safe haven currencies, dealers said.
The emerging currencies, including the ringgit, have started to benefit from the US economic crisis since end of last week, which saw the greenback fell against most Asian currencies.
Affin Investment Bank vice president and head of retail research, Dr Nazri Khan, said the investors' chief concern remained the impact of a possible US government shutdown next week and its negative impact on the markets.
"We, however, believe that based on the US Congressmen's track record of solving fiscal crisis at the last minute, they will avoid it.
"In fact, there are evidence that the markets had already priced in the risks of the US default and hence should trend higher in the next few weeks," he said.
He said the strong recovery seen in the emerging market currencies, which were sensitive to US default risk, could imply that the very jittery will fade.
The ringgit was traded broadly lower against other major currencies last week.
On a Friday-to-Friday basis, the local unit depreciated against the US dollar to 3.2270/2300 from 3.1625/1665 previously.
It also fell against the Singapore dollar to 2.5691/5725 from 2.5324/5375 last Friday and declined against the yen to 3.2705/2752 from 3.1813/1869 last week.
The domestic unit declined against the British pound to 5.1832/1893 from last Friday's 5.0730/0806 and eased against the euro to 4.3577/3624 from 4.2782/2846 previously.-- Bernama