Ringgit to be rangebound next week
Filed Under (Other News) by Webmaster on 22-03-2010
Tagged Under : Ringgit Malaysia
The ringgit is expected to be in rangebound trade next week on the back of speculation that the Chinese Yuan will be revalued, dealers said.
As for the greenback, the currency is expected to gain further strength as worries over the debt crisis of the Euro zone continues, they added.
According to Prudential Fund Management Bhd, speculation on the Chinese yuan’s revaluation had somewhat boosted Asian currencies during the week, despite the stronger US dollar.
It also said in its research note that the US dollar continued to remain attractive compared to the euro, due to the Euro zone sovereign risk issue.
Besides that, Asian central banks are likely to raise rates this year.But rates are expected to remain lower than pre-crisis levels, given especially the prevailing moderate inflation.
During the week just ended, the local currency was traded rangebound and managed to hit a new 19-month high of 3.2980/3010 at Wednesday’s close.
At the end of trade this week, the ringgit rose against the US dollar to 3.3020/3050 from 3.3055/3085 previously.
Against the Singapore dollar, it increased to 2.3653/3697 from 2.3675/3719 last Friday and improved against the Japanese yen to 3.6486/6544 from 3.6501/6558 previously.
The local unit also appreciated against the euro to 4.4861/4905 from 4.5355/5399 but declined against the British pound to 4.9996/5.0051 from 4.9956/5.0011 previously.
