KUALA LUMPUR: The ringgit is likely to trade higher next week, ranging from 4.10-4.15 against the US dollar.
The resumption of the Bandar Malaysia project coupled with the anticipation of favourable March inflation data, which would give less pressure to Bank Negara Malaysia to make an adjustment to the interest rate, will lift sentiment for the ringgit, a dealer said.
On Friday, Prime Minister Dr Mahathir Mohamad announced that the government would reinstate the Bandar Malaysia project, which was abruptly terminated in May 2017.ahathir
The proposed development at Sungai Besi, Kuala Lumpur, is expected to have a gross development value of RM140 billion.
Mahathir said Bandar Malaysia would have a significant impact on Malaysia’s economy and serve as a global hub to further attract high impact global finance, technology and entrepreneurial firms.
For the week just ended, the ringgit traded mostly lower against the dollar and hit a near three-month low of 4.1330/1360 on Wednesday following concerns over news that Malaysia might be dropped from the FTSE World Government Bond Index and the Norwegian sovereign wealth fund’s holdings.
The sell-off in the foreign exchange market lasted for two days but the market recovered on Friday as concerns eased.
On a Friday-to-Friday basis, the ringgit fell to 4.1300/1350 against the US dollar from 4.1120/1170 previously.