Ringgit set to gain strength this week on expectation of US dollar retreat

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KUALA LUMPUR: The ringgit is likely to trade with an upward bias this week against the US dollar as the greenback is retreating in global markets, said an economist.

Juwai IQI global chief economist Shan Saeed said Bank Negara Malaysia (BNM) has played its card smartly despite pressure from global financial markets.

“The US Federal Reserve (Fed) is making tactical [manoeuvres] to bring the value [of the US dollar] down in order to support the US economy. A 50 to 75 basis points hike is expected at the Sept 20-21 Fed meeting.

“A stronger US dollar is bad for the global economy. A stronger greenback makes imports cheaper for the US economy,” he said.

The ringgit is expected to trade within the 4.4000-4.4900 range against the US dollar this week.

Source : The Edge Markets

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