KUALA LUMPUR: The ringgit will likely extend its downward momentum against the US dollar next week as the weaker external environment amid heightened concerns over the COVID-19 outbreak will curb investors risk appetite, dealers said.
A dealer said the ringgit would likely move in a tight range of between 4.1650 and 4.1850, and the downside to below 4.20 is not seen for now due to the latest Bank Negara Malaysia’s overnight policy rate cut, which has boosted the demand for the ringgit.
"Economic numbers are down due to mounting COVID-19 fears, oil is down 2.7 per cent overnight on Friday to below US$50 per barrel level, which would affect Malaysia’s deficit target in the long run. For the week just ended, the ringgit ended sharply higher against the US dollar at 4.1700/1750 compared with 4.2120/2180 recorded on Friday in the previous week.
BNM on Tuesday slashed its benchmark rate by 25 basis points to 2.50 per cent to provide a more accommodative monetary environment to support the projected improvement in economic growth amid price stability.
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