Ringgit likely to remain volatile next week

Bernama
November 7, 2015 12:32 MYT
For the week just ended, the ringgit slipped to 4.3070/3160 from 4.2920/3000 in the previous week.
The ringgit is expected to remain volatile next week driven by uncertainty over a US interest rate hike amid continued weakness in commodities prices, dealers said.
Affin Hwang Investment Bank Vice-President/Head of Retail Research Datuk Dr Nazri Khan Adam Khan said comments from US Federal Reserve officials of a "live possibility" of a rate rise in December had already lifted the greenback from a two-month bottom.
He said this had weighed the ringgit to a fresh one-month low.
"There was no respite for commodities as gold, Brent oil and crude palm oil prices declined to a one-month low of US$1,103 an ounce, US$47.98 a barrel and US$610 a tonne, respectively," he told Bernama.
Meanwhile, another dealer said better-than-expected September export data could provide support for the local unit.
He said exports in September rose 8.8 per cent year-on-year, its highest year-on-year growth since May 2014, surpassing economists' forecast of 3.1 per cent growth, helped by demand from Malaysia's key markets.
For the week just ended, the ringgit slipped to 4.3070/3160 from 4.2920/3000 in the previous week following optimism over an interest rate rise in the US after the US officials' comments.
The ringgit, however, strengthened against other major currencies.
The local unit rose against the Singapore dollar to 3.0579/0647 from 3.0616/0695 last Friday and appreciated against the yen to 3.5326/5409 from 3.5568/5643 last week.
It was firmer against the British pound at 6.5337/5482 from 6.5792/5928 and strengthened against the euro to 4.6821/6924 versus 4.7233/7334 previously.
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