Malaysian Ringgit Expected To Trend Lower Against US Dollar Next Week

KUALA LUMPUR, Oct 14 (Bernama) -- The Malaysian ringgit is likely to trade lower against the US dollar next week at around the 4.23 level following a possible interest rates increase by the US Federal Reserve (Fed) in December. Affian Hwang Investment Bank Vice-President and Head of Retail Research, Dr Nazri Khan Adam Khan told Bernama that the local note, in line with other Asian currencies, would consolidate in reacting to among others, the third hike of US interest rate in December . “The US economy is currently expanding at a steady level and an increase in the interest rate would be appropriate. “The market will react defensively, because if the US Federal Reserve were to raise interest rates, we may see an outflow of foreign funds. “However, declining geopolitical pressures and slightly higher oil prices would cap losses in the local note,” he added. On a Friday-to-Friday basis, the ringgit traded higher at 4.2200/2240 against the greenback from 4.2360/2390.  It depreciated against the Singapore dollar to 3.1146/1187 from 3.0999/0039 on Friday and slipped versus the yen to 3.7638/7677 from 3.7500/7533. Against the euro, the ringgit was lower at 4.9918/9970 from 4.9574/9626 and vis-a-vis the pound, fell to 5.5995/5065 from 5.5326/5378.  -- BERNAMA