Ringgit to see range-bound trading

Published: 2009/06/20

THE ringgit is expected to experience range-bound trading next week with market sentiment remaining fragile amid current economic conditions, dealers said.The local currency may be traded within a similar range against the US dollar on strong commercial demand, they said.

"Optimism of the global economic recovery will support the ringgit, at least at the current level," one of the dealers said.According to her, the local unit will remain relatively volatile as the US dollar is still considered by investors as a safe haven during economic uncertainties.

"We will continue to see strong interest in the US dollar but it depends on sentiment in the currency market," the dealer said.She said the market is expected to focus on the policy meeting of the US Federal Reserve next week and the latest data on the global economic progress.At the end of the week, the ringgit traded higher against the US dollar in line with the uptrend on the local stock market.

On a week-to-week basis, the ringgit declined against the greenback at 3.5350/5390 from 3.5000/5050 last Friday.Against the Singapore dollar, the local currency weakened to 2.4256/4308 from 2.4106/4161 last Friday and was also lower against the Japanese yen at 3.6406/6458 from 3.5667/5722 previously.The ringgit declined against the British pound at 5.7857/7941 from 5.7666/7766 last Friday but strengthened against the euro at 4.9112/9178