FOREX: Ringgit to extend upward momentum

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KUALA LUMPUR: The ringgit is likely to extend its upward momentum against the greenback next week on renewed buying interest, dealers said.

They said the market was expected to see better progress on the European debt crisis and this would see demand for the greenback as a safe haven currency to ease.

News about local projects, better US non-farm payroll data, anticipated European liquidity stimulus and growing optimism that Greece would avoid a disorderly default would give support to the local unit, they added.

A dealer said that in technical terms, the ringgit would hover between 2.9950 and 3.0200.

This week, the local unit saw range-bound trading.

It started lower due to renewed concerns over Europe’s economic health and after China revised downward its economic forecast for 2012 which had dampened market sentiment.

On Thursday, the ringgit bounced back on rising appetite for emerging currencies, backed by optimism about the Greek bailout and encouraging US private sector jobs report.

On a Friday-to-Friday basis, the ringgit eased against the US dollar at 3.0060/0090 compared with 3.0030/0060 but rose against the Singapore dollar to 2.3964/4007 from 2.4007/4036.

The local unit was up against the Japanese yen to 3.6757/6821 from 3.6815/6865 and appreciated against the British pound at 4.7483/7539 from 4.7772/7828.

The ringgit also strengthened against the euro to 3.9724/9767 from 3.9781/9826. –Bernama