Ringgit likely to trend higher versus USD
The ringgit is expected to trend higher against the US dollar next week on optimism over a delay in the tapering of US
quantitative easing and 2014 Budget, a dealer said.
The dealer said the market breathed a sigh of relief as the US policymakers struck an 11th hour deal on Thursday to end the 16-day government shutdown and more importantly, raise the US debt limit to avert a potential default.
"Despite the recent uncertainty, it may give positive monetary implication which may argue for a somewhat delayed timetable on the US Federal Reserve (Fed) tapering of the economic stimulus programme," he said.
Hence, he said market sentiment should be supported by the Fed which is likely to maintain the programme, possibly to February next year, before the the policymaker feels comfortable enough to curtail the stimulus.
The dealer said investors would also turn their eyes to the 2014 Budget which will be presented by Prime Minister Datuk Seri Najib Razak on Friday next week.
Meanwhile, for the week just-ended, the ringgit was traded mostly higher against other major currencies in the holiday-shortened week.
The market was closed on Tuesday for Hari Raya Aidiladha.
On a Friday-to-Friday basis, the local unit appreciated against the US dollar to 3.1550/1580 from the previous week's 3.1785/1815.
It eased against the Singapore dollar to 2.5478/5511 from 2.5459/5491 last Friday but soared versus the yen at 3.2233/2267 from 3.2310/2347.
The local unit weakened against the British pound at 5.1067/1125 from 5.0746/0801 and fell against the euro to 4.3192/3236 from 4.3102/3149.-- Bernama