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| FOREX: Ringgit To Be Firmer Against US Dollar Next Week |
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| Written by Administrator | |
| Sunday, 07 October 2007 | |
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The ringgit is likely to be firmer against the U.S dollar next week as the greenback is expected to weaken further on visible signs that the United States economy is slowing down, dealers said. They said the services sector data, which was among the few economic datas released this week, was not remarkable and failed to influence investors sentiment in the U.S economy. This will give advantage to other Asian currencies to rise further, they added. KUALA LUMPUR, Oct 6 (Bernama) -- The ringgit is likely to be firmer against the U.S dollar next week as the greenback is expected to weaken further on visible signs that the United States economy is slowing down, dealers said. They said the services sector data, which was among the few economic datas released this week, was not remarkable and failed to influence investors sentiment in the U.S economy. This will give advantage to other Asian currencies to rise further, they added. RAM Holdings chief economist Dr Yeah Kim Leng said the bullish sentiment for ringgit would continue until the end of the year, given that the U.S. economy is still facing a downward pressure. "We expect the U.S. subprime mortage problem will continue for the rest of this year, and that means further cut in interest rate is expected to sustain the market as well as resolve the liquidity. "Further cuts in the interest rate will mean downward pressure for the U.S. dollar," he told Bernama. The rating agency expects the ringgit to reach between 3.30 and 3.35 by end of the year. For the week just ended, the ringgit was higher in the first two days but was down till Thursday before rebounding ahead of the weekend. The ringgit moved between 3.3880 and 3.4240 during the week. On Friday, the ringgit was higher at 3.4020/4070 to the dollar from 3.4105/4155 the previous day. On a week-to-week basis, the ringgit was higher against the U.S dollar at 3.4020/4070 from the previous Friday's 3.4065/4115. Against the Singapore dollar, the local unit was lower at 2.3038/3089 from 2.2893/2942 in the previous week but increased against the yen to 2.9169/9222 from 2.9519/9570. The ringgit also declined against the British pound to 6.9285/9394 from 6.9074/9185 and rose against the euro to 4.7995/8076 from 4.8287/8372. Source - BERNAMA |
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