Ringgit May Test 3.56 Level

Published: 2009/04/25

THE move to liberalise the 27 services sub-sectors and the plan to do likewise for the financial services industry are set to boost the ringgit, possibly helping it to test the 3.56 level against the US dollar next week.

For the week just ended, the ringgit touched the 3.5800/5850 level against the US dollar from 3.6140/6190 last Friday, showing an increase of 1.6 per cent.

Dealers said that if the local currency managed to hit the 3.56 level, it may be able to hold the strong momentum in the near term.

"The good news boosted the market and spurred commercial demand, with expectation of more inflow funds coming into the country," a dealer said, adding that local bourse strong performance would continue to provide support.

The benchmark Kuala Lumpur Composite Index (KLCI) was higher by 1.44 per cent, or 14.04 points, to close the day at 992.68 on Friday. In the morning the key index had opened 3.45 points higher at 982.09.

"The ringgit will continue to move in tandem with the Bursa Malaysia performance, which is expected to open higher next week," another dealer said.

During the week, the ringgit was mostly lower against the US dollar as the local unit came under pressure from the inflation data for March 2009 released on Wednesday which showed a rise of 3.5 per cent year-on-year.

The ringgit strengthened against the Singapore dollar at 2.4004/4060 from last Friday's 2.4055/4112 but was weaker against the Japanese yen at 3.6900/6963 from 3.6406/6467 previously.

The local currency moved up against the British pound at 5.2365/2449 from 5.3476/3568 last Friday but declined against the euro at 4.7424/7505 from 4.7253/7329 previously. -- Bernama