Ringgit likely to weaken further

THE ringgit is likely to weaken next week, testing the 3.64 level following the recovery of the US dollar as investors resume buying interest in the greenback, dealers said.

They said that there will be further upside for US dollar if the risk of a global recession deepens everyday, and fear prevails in the financial market.

The US dollar is being supported by more bad economic news, risk aversion, and repatriation flows, they added.

However, in a contrasting view, one of the dealers said the ringgit is likely to stay steady on speculation more rate cuts by global central banks, which will make the local currency relatively more attractive.

On a Friday-to-Friday basis, the ringgit was weaker against the US dollar at 3.6330/6360 from 3.6210/6260 quoted at last Friday’s closing as well as against the Japanese yen at 3.9447/9514 from 3.3800/8068 last Friday.

However, the ringgit rose against the Singapore dollar at 2.3929/3980 from 2.4010/4064 last Friday and it was also higher against the euro at 4.6457/6516 from 4.6772/6862 previously.

The local unit also appreciated against the pound sterling at 5.3478/3566 from 5.5782/5877 last Friday. — Bernama