KUALA LUMPUR: The ringgit will likely trade higher versus the US dollar this week, boosted by Bank Negara’s measures to support the local currency, an analyst said.
The central bank recently announced that exporters can only retain up to 25% of export proceeds in foreign currency, so as to encourage more domestic trade in the ringgit. Under the new measures, 75% of all new export proceeds will have to be converted into ringgit.
“Most traders welcome the recent measures to help strengthen the ringgit,” the analyst said, adding that the ringgit is expected to trade between the 4.42 and 4.35 level.
Meanwhile, Affin Hwang Investment Bank vice-president/retail research head Datuk Dr Nazri Khan Adam Khan said the ringgit will be slightly lower amid a strong dollar on the global market. “The greenback is on the uptrend following the European Central Bank’s decision to extend its bond buying by nine months until end-2017,” he told Bernama.
In the meantime, the ringgit will also trade in a cautious mode ahead of the US Federal Reserve’s interest rate announcement.
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