Ringgit likely to trade higher vs US dollar

The ringgit is likely to trade higher against the US dollar next week on strong buying interest in the local unit, dealers said.

Affin Investment Bank vice president and head of retail research Dr Nazri Khan said the fact that President Barack Obama is considering a proposal to extend the US debt ceiling for six weeks, could be the catalyst needed to spur more market optimism for the week.

"Despite being a short term resolution, the positive hints from the White House suggests that the US government shutdown and world's largest bond default by October 17, could be avoided.

"This is also be aided by market approval of Janet Yellen's nomination as the Federal Reserve's first chairperson, and one who is widely perceived as pro-stimulus, dovish and a loose Fed economist," he told Bernama.

Meanwhile, the ringgit was traded mostly lower against other major currencies last week.

On a Friday-to-Friday basis, the local unit appreciated against the US dollar to 3.1785/1815 from 3.1810/1840.

It also rose against the Singapore dollar to 2.5459/5491 from
2.5509/5535 last Friday, and soared versus the yen at 3.2310/2347 from 3.2720/2761.

The domestic unit strengthened against the British pound at 5.0746/0801 from 5.1233/1294, and improved against the euro at 4.3102/3149 from 4.3300/3344