Business

Ringgit likely to trade higher against dollar next week

The ringgit is likely to trade higher against the greenback next week as investors move out of safe haven currencies against the backdrop of uncertain external economic conditions.

The greenback is expected to depreciate on growing fears that the US government shutdown could lead to a catastrophic debt default while emerging Asian currencies, including the local note, reaping benefits.

Affin Investment Bank Vice-President/Head of Retail Research Dr Nazri Khan said the local market should draw support from the upcoming Budget 2014, as well as, the listing of two mega initial public offering, namely UMW Oil Gas Bhd and Westport Bhd, which would raise RM1.7 billion and RM2.2 billion, respectively.

"We expect budget measures to arrest competitiveness and improve public finance to attract more investor confidence and foreign fund inflow into the market," he told Bernama.

The ringgit was traded mostly higher against other major currencies last week.

On a Friday-to-Friday basis, the local unit appreciated against the US dollar to 3.1810/1840 from 3.2270/2300.

It also rose against the Singapore dollar to 2.5509/5535 from 2.5691/5725 last Friday but was slightly lower against the yen at 3.2720/2761 from 3.2705/2752 last week.

The domestic unit strengthened against the British pound to 5.1233/1294 from 5.1832/1893 last Friday and increased against the euro to 4.3300/3344 from last week's 4.3577/3624. - Bernama, October 5, 2013.

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