RINGGIT LIKELY TO TREND HIGHER NEXT WEEK

By Wan Nor Azura Mior

KUALA LUMPUR, Aug 7 (Bernama) -- The ringgit, which was steadier against the
US dollar throughout the week, is set to strengthen further next week.

The local unit will remain strong to trade between 3.1300-3.1900 in the near
term on the appeal of higher yielding Asian currencies amid the uncertain
outlook in the US and uneven recovery in Europe.

If the local unit hits a 28-month high of 3.13 level, it will be the highest
since April 2008.

Economist with RAM Holdings Bhd Jason Fong said the appreciation of the
ringgit was due to the widening interest rate differentials between Malaysia and
the advanced economies, particularly the US and Europe.

"Furthermore, Asia's better growth prospects relative to advanced economies
has likewise fueled the ringgit's strength, and is expected to continue to do so
in coming months, Jason told Bernama today.

He said China's recent relaxation of the yuan's fixed exchange regime
and its expected future appreciation against the US dollar would also provide
additional upward pressure for the ringgit, as these currencies have been known
to move in tandem with each other.

For the just-ended week, the ringgit closed higher against the US dollar
at 3.1460/1490 compared with 3.1790/1830 last Friday.

It eased against the Singapore dollar to 2.3274/3317 from 2.3358/3408 last
Friday and also against the Japanese yen to 3.6547/6586 from 3.6832/6896.

The ringgit also declined against the British pound to 4.9867/9924 from
4.9666/9741 last Friday and against the euro to 4.1489/1538 from 4.1476/1538
previously.
-- BERNAMA