The ringgit is likely to breach the 4.00-level against the US dollar next week, driven by favourable external factors amid stable crude oil prices.

Affin Hwang Investment Bank vice-president/head of retail research Nazri Khan Adam Khan said the ringgit was expected to strengthen further next week on anticipation that the Federal Reserve would hike interest rates.

“We expect the ringgit to break the 4.00-level versus the dollar this week,” he told Bernama.

Nazri Khan also reiterated that he was waiting for crude oil prices to stabilise, as it has already dipped to US$42 per barrel.

For the week just-ended, the ringgit neared a seven-month high on Wednesday as demand emerged among foreign institutional players but gains were pared later in the week on profit taking.

It ended at 4.0670/0740 on Friday against the greenback from 4.0535/0595 the previous week.

The local unit declined against the Singapore dollar to 3.0108/0169 from the previous Friday’s 2.9891/9937 and decreased versus the yen to 3.9257/9343 from 3.8223/8290.

It also fell against the British pound to 5.3583/3691 from 5.3194/3281 previously and depreciated against the euro to 4.5180/5274 from 4.4686/4768 last Friday.

- Bernama