Ringgit expected to trade cautiously next week

The ringgit is likely to experience cautious trading next week, amid the uncertain global sentiment, said a trader. "Emerging Asian currencies are expected to continue to be affected by external factors such as the performance of global crude oil and uncertainty on the policy direction in major economies particularly the United States on the Federal Reserve's interest rate decision and China with the yuan devaluation. "Issues confronting state sovereign fund 1Malaysia Development Bhd and domestic political woes are other challenges facing the ringgit," he said. The data to monitor next week were the July consumer price index and foreign reserves for the period ending Aug 14, he said. “Players might continue to trade for long dollar and short ringgit next week with no immediate target level. Technically, the market might retest the 4.15 level while 4.00 remains the key support," he added. For the week just ended, the ringgit traded 1,530 basis points lower against the US dollar at 4.0750/0800 from 3.9220/9250 recorded last Friday. The ringgit hit an intraday level of 4.15 to the dollar on Friday last week for the first time since the Asian financial crisis 17 years ago. The local unit also declined further against the Singapore dollar at 2.9037/9087 from 2.8291/8317 last Friday and weakened against the yen to 3.2784/2837 from 3.1429/1458 previously. It declined against the pound sterling to 6.3603/3693 from 6.0881/0943 last week and was easier against the euro at 4.5424/5496 from 4.2836/2885 previously.