Ringgit expected to trade at 3.58/59 level

Published: 2009/05/02

THE ringgit is expected to benefit from Bank Negara Malaysia's (BNM) move to maintain interest rate, a move seen as a positive sign that the local economy is stable.

"It is a positive news. BNM's move shows that worries about our economy are easing. People will start to invest again," a local trader said.

She expected the ringgit to trade at 3.58/59 level next week on profit-taking in the earlier part of the week.

For the week just ended, the ringgit touched a three-week high of 3.5570/5620 against the US dollar from 3.5800/5850 last Friday, after taking a beating following the flu scare that broke out over the weekend.

"This made investors lose their appetite for risk and sought safe haven currency such as the yen and US dollar," she said.

However, by the later part of the week, the ringgit gained momentum as risk appetite came back on signs of slowing global economic downtrend and that the H1N1 flu had limited impact on economy.

She said the rise in the local unit was in line with local stocks. The benchmark Kuala Lumpur Composite Index rose by 2.41 per cent, or 23.28 points, to close the week at 990.74, after opening 5.97 points higher at 973.43.

The ringgit eased against the Singapore dollar at 2.4076/4143 from last Friday's 2.4004/4060.

It, however, firmed against the yen at 3.6422/6496 from 3.6900/6963 previously.

The local currency eased against the British pound at 5.2907/2995 from 5.2365/2449 last Friday.

It, however, gained against the euro at 4.7379/7460 from 4.7424/7505 previously. -- Bernama