Ringgit likely to be steadier


KUALA LUMPUR: The ringgit is likely to be steadier this week, with the US dollar expected to be pressured by profit-taking activities, RHB Bank’s foreign exchange dealer Nur Adeline Baharin said.

She said the local currency was expected to move between the 3.36 and 3.40 level against the US dollar.

The greenback, which was on an uptrend the past few days, retreated from its highs, due to an overbought situation.

“The dollar has been overbought and we see traders unloading the dollar,” she said, adding that this would boost the local currency.

The dollar on Friday was also affected by proposed US banking regulations by President Barack Obama.

Nur Adeline said in the absence of fresh news from the US, the dollar’s movements would likely be determined by the movements in the equity and commodity markets this week.

The ringgit began Monday on a strong note before retreating on Wednesday as dealers took a cautious stance ahead of the Monetary Policy Committee meeting scheduled later this month. — Bernama

“Investors are waiting to see whether Bank Negara Malaysia will increase the overnight policy rate,” Nur Adeline said, adding that any hike was expected to boost capital inflows into the country.

This, in turn would increase demand for the local unit, she added.

This week, the ringgit eased against the US dollar to 3.3940/3990 from 3.3380/3410 last week.

The local unit depreciated against the Singapore Dollar to 2.4203/4260 from 2.4032/4057 and against the Japanese Yen to 3.7586/7658 from 3.6786/6828.

It also dipped against the British Pound to 5.5183/5281 from 5.4500/4562 but rose against the Euro to 4.7978/8055 from 4.8091/8144. — Bernama