Ringgit Expected To Trade Between 4.25-4.35 Against US Dollar Next Week

By S. Joan Santani KUALA LUMPUR, Dec 19 (Bernama) -- The ringgit is likely to trade within the range of between 4.25 and 4.35 against the greenback next week as the US dollar lost ground following the rate lift-off by the United States. Mercury Securities Head of Research Edmund Tham said there was very little impact on market movement following the rate hike announcement by the Federal Reserve (Fed). "News of the imminent increase has been floating in the market for quite some time and the announcement made very little impact on our local note. "I believe there won't be much movement in the next two weeks as the market still needs a catalyst to boost the currency," he told Bernama. The Fed finally ended an historic era of near-zero interest rates in the US that dated back to December 2008 when crisis gripped global financial markets. A dealer said earlier in the week just ended, the ringgit was rangebound against the greenback amid the absence of fresh catalysts which made investors opt for the safe US dollar. The dealer said however regional currencies including the ringgit would further face some downward pressure due to low oil and commodity prices in the short term. Minister in the Prime Minister's Department Datuk Seri Wahid Omar said the government will review Budget 2016 if oil prices continue to stay low. The government had planned for the Budget based on the assumption that Brent crude would average at US$48 per barrel for next year, but at mid-day on Thursday it was trading at around US$37 per barrel. Brent crude oil price declined US$1.26 to US$37.19 per barrel due to a global supply glut. For the week just ended, the ringgit increased to 4.2870/2940 against the greenback from last Friday's 4.2900/2950. The local unit rose against the Singapore dollar to 3.0344/0400 from 3.0484/0543 last Friday, fell against the yen to 3.5342/5414 from 3.5199/5251 last week but went up against the British pound to 6.4039/4161 from 6.5049/5142 previously. It also strengthened against the euro to 4.6415/6495 from 4.7048/7112 previously. -- BERNAMA