KUALA LUMPUR, Dec 31 — The ringgit is likely to continue its uptrend against the US dollar next week, trading between the 4.38 and 4.41 level for the first week of the new year on the back of buying support from locals upon the ringgit’s weakness, said an analyst.
“I also expect a bigger drawdown on exporters and more prominent local investors' US dollar holdings and a boost in foreign direct investment to commence out of the gates in the new year. For the week just ended, Kenanga Research said ringgit strengthened against the US dollar after moving in a very tight range between 4.420 and 4.425 from Monday to Thursday, mainly due to the return of risk appetite amid China’s reopening optimism.
The local note was traded mostly higher against a basket of major currencies except the Singapore dollar.