Hong Leong Bank’s Head of Fixed Income & Economic Research Choong Yin Pheng said positive sentiment over global oil prices would also help the ringgit stay firm.
“We think the recent recalibration of the Budget 2016 reflected a realistic scenario and boosted investor appetite for the local note. With strong domestic demand, the ringgit is expected to stay firm next week,” she said.
The move by the Attorney-General Mohamad Apandi Ali to clear Prime Minister Najib Razak of criminal wrongdoing over a RM2.6 billion donation has also reduced the risk to the sovereign ratings, according to Standard & Poor’s Ratings Services.
Najib, who is also the Finance Minister, announced 11 measures to face the current economic challenges under the recalibrated Budget 2016, while ensuring the people’s welfare and country’s economic growth remained on a sound footing.
For the week just-ended, the ringgit hit its highest level in three-and-a-half months on Friday, touching 4.15 to the US dollar, mainly on higher crude oil prices.
It also traded higher against other major currencies.
On a weekly basis, the local unit strengthened further against the greenback to 4.1500 from last Friday’s 4.2950/2040.
It climbed against the Singapore dollar to 2.9143/9228 from 3.0073/0157 and appreciated against the yen to 3.4337/4429 from 3.6309/6388.
The ringgit rose against the euro to 4.5206/5323 from 4.6566/6673 and ended higher against the British pound at 5.9598/9758 from 6.1238/1384.