KUALA LUMPUR, March 27 — The ringgit is expected to rebound slightly against the US dollar next week, riding on improved market sentiment backed by potentially higher global oil prices.
“Given its strong relationship with oil prices, there is a strong potential for the ringgit to appreciate to between RM4.12 and RM4.13 against US dollar next week.
“However, any further negative development regarding the sanctions imposed on China by the West could exert downward pressure on the ringgit,” Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said told Bernama.
Oil prices rebounded on Friday following a deep plunge a day earlier on concern that a large container ship that ran aground in the Suez Canal might block the vital shipping lane for a week, thus squeezing supply to the global market.
At press time, the benchmark Brent crude oil rose by two per cent to US$63.19 per barrel.
For the week just ended, the ringgit recorded a straight five-day losses as risk appetite was influenced by the higher US bond yields, renewed concern over US-China trade relations, lockdowns in the European continent and caution over global growth recovery.
On a Friday-to-Friday basis, the ringgit depreciated versus the US dollar to 4.1445/1485 from 4.1050/1100 a week earlier.
The local note also traded easier against other major currencies.
It fell against the Singapore dollar to 3.0778/0814 from 3.0564/0603 a week earlier and weakened against the Japanese yen to 3.7853/7900 from 3.7712/7762.
The ringgit decreased marginally vis-a-vis the British pound to 5.7153/7224 from 5.7150/7228 on Friday last week and contracted against the euro to 4.8872/8927 from 4.8813/8884. Bernama