KUALA LUMPUR: The ringgit is likely to continue its uptrend against the US dollar next week, supported by Bank Negara Malaysia’s (BNM) decision to keep the overnight policy rate (OPR) unchanged at three per cent at its eighth straight meeting last Thursday.
On Friday, the ringgit continued its upward momentum by rising 150 basis points to 4.1900/1930 against the greenback from Thursday’s 4.2050/2080.
“This was prompted by rising crude oil prices coupled with renewed optimism instilled by BNM, showing signs that Malaysia’s economy is strengthening,” a dealer told Bernama.
RHB Research Institute said Malaysia’s economy is projected to improve further in line with its gross domestic product (GDP) growth forecast of 5.4% in 2018.
“Going into 2018, BNM envisages headline inflation to be moderate, on expectations of a smaller effect from global cost factors,” the research house said in a note.
RHB Reseach said the central bank sees that the global economic activity has continued to strengthen, with global trade picking up significantly.
“Looking forward, the central bank projects sustained growth in the global economy, despite several downside risks,” it said.
On a Friday-to-Friday basis, the ringgit rose 440 basis points to end at 4.1900/1930 against the greenback from 4.2340/4370, previously.
Against other major currencies, the ringgit was traded mostly higher from the previous Friday.
It rose against the Singapore dollar to 3.0804/0835 from 3.1093/1122 and strengthened versus the Japanese yen to 3.6952/6988 from 3.7088/7128.
The ringgit was firmer vis-a-vis the euro at 4.8855/8899 from 4.9309/9357 and advanced against the British pound to 5.5099/5155 from 5.5326/5382. — Bernama