FOREX: Ringgit Likely To Be Firmer Against The U.S. Dollar Next Week
KUALA LUMPUR, (Bernama) — The ringgit is likely to trend firmer against the U.S. dollar next week, supported by brisk demand from foreign banks in anticipation of positive domestic economic fundamentals, dealers said.
They said that despite worries over rising inflation and crude oil prices, demand for the local currency is expected to remain strong.
“The greenback could be under selling pressure on concerns over further possible rise in crude oil prices and inflation,” one of the dealers said.
“But on the domestic front, the government’s move to implement measures to contain inflation will provide strong support to the ringgit.”
The government has implemented several measures to contain food price pressures, including creating a national food stockpile.
Prime Minister Datuk Seri Abdullah Ahmad Badawi dismissed a report by the U.S. Treasury that the ringgit is undervalued.
He said the ringgit reflects its true value and that of the economy and neither is it contributing to imbalances in the currency market.
Abdullah also said that since the ringgit’s peg against the U.S. dollar of 3.8 was removed on July 21, 2005, it has appreciated gradually in tandem with economic growth and expanding trade minus any currency volatility.
The local currency had appreciated by about 18.2 percent versus the greenback since it was unpegged about three years ago.
Another dealer said the ringgit, which traded at 3.2120 to the greenback in late trading yesterday, is expected to be supported at 3.24 in the near future.
On Friday-to-Friday basis, the ringgit had strengthened against the U.S. dollar at 3.2120/2150 from 3.2350/2400.
However, it traded mostly lower against other major currencies.
The local unit depreciated against the Singapore dollar at 2.3621/3662 from 2.3572/3627 and declined against the yen at 3.0935/0973 from 3.0930/0981 previously.
Similarly, it was lower against the British pound at 6.3530/3602 from 6.3047/3154.
However, it went up against the euro at 5.0133/0214 from 5.0583/0634 previously.
– BERNAMA
No comments yet. Be the first.
Leave a reply
