Ringgit to stay under pressure next week

Affin Hwang Investment Bank Vice-President/Retail Research Head Datuk Dr Nazri Khan Adam Khan said the local note hit 4.4780 against the greenback on Tuesday, the lowest level since the 4.71-level recorded in January 1998.

"The continuous foreign fund outflows is due to the recent US Federal Reserve's (Fed) interest rate hike, the anticipation of more rate hikes in 2017, as well as President-elect Donald Trump's new policies on infrastructure spending and tax cuts," he told Bernama.

In addition, he said the weaker commodity prices such as crude oil and crude palm oil were also expected to drag down the local note next week.

"The ringgit is likely to stay under pressure for a few weeks until more visibility in Trump's foreign and trade policies and the market's reactions toward the Fed's interest rate hikes.

"It might take a few weeks for the ringgit to stabilise," he added.

For the week just-ended, the ringgit was, however, higher at 4.4725/4755 against the greenback from 4.4755/4795 last Friday, and appreciated against other major currencies except the yen.

The ringgit advanced against the Singapore dollar to 3.0934/0959 from 3.1015/1058 last Friday, rose against the British pound to 5.4904/4946 from 5.5568/5640 last week and improved to 4.6751/6800 against the euro from 4.6823/6887 previously.

However, it slid to 3.8112/8145 versus the yen from last Friday's 3.7899/7959.