Ringgit To See Range-Bound Trading Next Week

KUALA LUMPUR, March 11 (Bernama) -- The ringgit is likely to see range-bound trade next week with the support level at 4.4390 and resistance of 4.4625, according to Hong Leong Bank (HLB) Research. It said it is also not impossible for the US dollar to retreat next week, which would allow for a moderate advance in the ringgit. "Otherwise, expect the current bearish tone for the ringgit to persist. "The technical viewpoint suggests that there is potential for the rate to reverse into a bearish bias if it continues to fail to close above 4.4630," it said in a note. On the upcoming US Federal Open Market Committee (FOMC) meeting on March 14-15, HLB said the market had priced in a definite hike in US Federal Reserve (Fed) funds target range to 0.75- 1.00 per cent. "Gains in the US dollar have been strongly anchored on the Fed rate hike. "We suspect the bullish tone in the US dollar may be coming to a halt. We reckon that a sell-off may occur ahead of and post-FOMC decision," said the research house. For the week just-ended, the ringgit moved between 4.4480 and 4.4590 against the US dollar. On a Friday-to-Friday basis, the ringgit traded higher at 4.4490/4540 against the greenback from 4.4520/4570. Against other major currencies, the local note finished mostly higher. The ringgit appreciated versus the Singapore dollar to 3.1384/1424 from 3.1470/1523 last week and advanced against the yen to 3.8566/8620 from 3.8960/8018. Against the British pound, it rose to 5.4167/4241 from 5.4439/4514, but declined against the euro at 4.7217/7275 from 4.6817/6883. -- BERNAMA