Ringgit expected to gain against US dollar

KUALA LUMPUR: The ringgit is expected to remain steady against the US dollar this week with Asian currencies lending support as regional markets slowly gain momentum, dealers said. “The ringgit will be well supported at the 3.46 level next week,” said a dealer, adding that fundamentals were still weak in the absence of fresh leads.

There is no fresh impetus to drive the ringgit in any direction but any unhealthy news in the United States will downgrade the greenback’s value in overseas markets, hence the ringgit is likely to ride on this weakness.

The testing caption starts here and end there soon.

The testing caption starts here and end there soon.

Another dealer added that most investors preferred to keep the US dollar as a “safe haven” during economic crisis.

However, the dealer believed the ringgit’s gain could plateau in the event Bank Negara Malaysia intervenes to keep the ringgit at comfortable levels.

During the week, the ringgit was traded within a tight range with the local unit hitting a nine-month high on Wednesday following news that the government would form a US$2.5 billion joint venture company with Saudi Arabia.

The Saudi investment is for a planned US$2.5 billion fund that will be set up by PetroSaudi International and a Malaysian government body called 1Malaysia Development.

On a week-to-week basis, the ringgit was lower against the greenback at 3.4770/4810 compared with 3.4680/4720 registered last Friday.

Against the Singapore dollar, the ringgit declined to 2.4536/4599 from 2.4479/4534 last week and fell against the yen to 3.8897/8955 from 3.8304/8360 previously.

The ringgit, however, rose against the British pound to 5.5288/5369 on Friday from 5.5592/5674 last Friday and appreciated against the Euro to 5.0590/0659 from 5.0948/1018 previously. — Bernama

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