Ringgit could retreat as investors hold dollars

Published: 2009/12/12

The ringgit is likely to be lower against the US dollar next week with investors holding on to their dollar positions in anticipation of further advances of the greenback, dealers said.

They said the ringgit could move to the 3.45 level against the greenback as investors speculated on a stronger dollar till year-end.

"Investors are also waiting for further advances in the greenback before they liquidate their dollar positions, especially with the coming holiday season, as this will enable them to maximise on their gains," said one of the dealers.

During the week, the ringgit was rangebound against major currencies, as Asian currencies such as the Philipine peso firmed with the weakening of the US dollar.

The Australian dollar and New Zealand dollar rallied against the US dollar during the week, sparked by talk of the possibility of an interest rate hike in both Australia and New Zealand.

On Friday, the ringgit closed lower against the US dollar on strong demand for the greenback with better market sentiment in regional equity markets.

On a Friday-to-Friday comparison, the ringgit was weaker against the US dollar at 3.3980/4010 compared to 3.3790/3830 last Friday.

The local currency also weakened against the Singapore dollar at 2.4448/4496 compared to 2.4436/4500 previously.

The ringgit strengthened against the Japanese yen at 3.8227/8274 from 3.8332/8391 last Friday.

The local currency was firmer against the British pound at 5.5452/5521 compared to 5.6189/6266 last Friday and also against the euro at 5.0080/0158 from 5.0911/0982 previously. -- Bernama