Week ending Friday, 5th June 2010 : FX Ringgit

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hi,

I don't have a copy of The Star as I'm still in Singapore, and Starbizweek FX reports aren't online. So it's just the Bernama report for the Week ending Friday, 5th June 2010 :


05 June, 2010 (10.41am) : FOREX: Ringgit Likely To Be Lower Against US Dollar Next Week
KUALA LUMPUR, June 5 (Bernama) -- The ringgit is likely to be lower against the US dollar next week with the greenback expected to strengthen on an improved job market in the United States, dealers said.

Some economists are predicting that the US economy will recover from the global economic downturn this year, with recent economic data showing a significant increase in the sales of US homes and cars. According to the dealers, the ringgit is likely to test the 3.30 level against the US dollar next week before moving further downwards to the 3.36 level in the coming weeks.

"There is a tendency for investors now to buy the dollar and sell other currencies. If the European debt crisis escalates, the dollar is likely to be firmer on increasing preference of its appeal as a safe haven," said one of the dealers. "The ringgit is also likely to weaken against major currencies such as the Singapore dollar," she said.

Against European currencies, the ringgit is expected to be higher on expectation that these will be affected by concerns over the impact from the debt crisis in Europe. During the week, the ringgit recovered on Wednesday from its recent losses against the US dollar in line with the rebound in Asian currencies and the euro. The ringgit continued its uptrend on Thursday against the US dollar with investors turning to riskier assets on positive US economic data.

The local currency also gained against major currencies during the week as positive US economic data bolstered the outlook for Malaysian exports. The ringgit closed lower against the US dollar on Friday on increasing demand for the greenback.

Investors, still jittery over the European debt crisis, shifted their attention to the greenback as they awaited the release of key US job data. The ringgit also weakened against major currencies on Friday except for the euro.

Most Asian currencies were steady on Friday ahead of key US job data which is expected to show an improved outlook in the market. On a week-to-week comparison, the ringgit was higher against the US dollar at 3.2730/2770 from 3.2940/2980 last Thursday.

The ringgit strengthened against the Singapore dollar at 2.3340/3379 from 2.3417/3470 last Thursday and also against the Japanese yen at 3.5277/5324 from 3.6486/6539 previously.

The local currency, however, weakened against the British pound at 4.8021/8100 from 4.7687/7762 last Thursday but rose against the euro at 3.9960/4.0015 from 4.0352/0407 previously.
BERNAMA
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