Ringgit poised to see profit-taking after this week's strong rally
KUALA LUMPUR:The ringgit is expected to experience profit-taking next week following its strong rally over the last six trading days.
The ringgit is anticipated to undergo profit-taking next week after a strong rally over the past six trading days, according to Kenanga Research. The local note concluded at 4.0365/0405 to the US dollar on Friday, and the sharp rally and oversold conditions this week present an opportunity for profit-taking if the US Federal Reserve chair, Kevin Warsh, delivers less dovish guidance at the Jackson Hole Symposium on Aug 27-29.
Investors will be closely monitoring the Fed's policy decision at the upcoming Federal Open Market Committee meeting on Sept 15-16. The US dollar/ringgit is expected to trade within the range of 4.04-4.06, with a possible early corrective bounce before the ringgit's strength resumes. On a Friday-to-Friday basis, the ringgit rose against the greenback to 4.0365/0405 from 4.0840/0885 a week earlier, and traded mostly higher against a basket of major currencies during the week.
Brief written by urgent.news from New Straits Times's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
