ID :
137635
Sat, 08/14/2010 - 18:39
Auther :
Shortlink :
https://oananews.org//node/137635
The shortlink copeid
RINGGIT TO MOVE IN LINE WITH STOCKS
By Nurul Jannah Kamaruddin
KUALA LUMPUR, Aug 14 (Bernama) -- The ringgit may come under pressure next
week if stocks tumble but short covering and bargain hunting in the share market
would provide some stability to the local unit, a dealer said.
The local bourse incurred three straight days of losses last week amid fresh
doubts over the strength of the global economic recovery, but managed to stage a
rebound on Friday.
The ringgit, which hit a two-year high on Monday, retreated sharply on
Wednesday after the Federal Reserve warned that the US recovery would be weaker
than anticipated.
"There is more and more news that momentum in the global economy is waning.
"If the US and China's economies slow, it will cause a concern," the dealer
said.
Fears over the implications of a downbeat Federal Reserve and signs of a
dramatic slowing in the Chinese economy weighed heavily on investor sentiment
during the week.
"If sentiment continues to soften, this will encourage investors to buy the
safe-haven dollar and dump riskier assets," he said.
On the local front, the dealer said, trading might be tight as currency
traders were expected to continue adopting a wait-and-see stand ahead of the
release of second quarter GDP figures by Malaysia's central bank Bank Negara
Malaysia on Wednesday.
Most analysts expect second quarter growth to remain strong between 8.0
per cent and 8.5 per cent. Malaysia's first quarter GDP grew 10.1 per cent
year-on-year.
For the week just ended, the ringgit was lower at 3.1660/1690 against the US
dollar compared with the previous week's closing of 3.1460/1490.
It also eased against the Singapore dollar to 2.3288/3331 from 2.3274/3317
last and the Japanese yen to 3.6874/6913 from 3.6547/6586.
The ringgit, however, rose against the British pound to 4.9532/9589 from
4.9867/9924 and against the euro to 4.0708/0757 from 4.1489/1538.
-- BERNAMA
KUALA LUMPUR, Aug 14 (Bernama) -- The ringgit may come under pressure next
week if stocks tumble but short covering and bargain hunting in the share market
would provide some stability to the local unit, a dealer said.
The local bourse incurred three straight days of losses last week amid fresh
doubts over the strength of the global economic recovery, but managed to stage a
rebound on Friday.
The ringgit, which hit a two-year high on Monday, retreated sharply on
Wednesday after the Federal Reserve warned that the US recovery would be weaker
than anticipated.
"There is more and more news that momentum in the global economy is waning.
"If the US and China's economies slow, it will cause a concern," the dealer
said.
Fears over the implications of a downbeat Federal Reserve and signs of a
dramatic slowing in the Chinese economy weighed heavily on investor sentiment
during the week.
"If sentiment continues to soften, this will encourage investors to buy the
safe-haven dollar and dump riskier assets," he said.
On the local front, the dealer said, trading might be tight as currency
traders were expected to continue adopting a wait-and-see stand ahead of the
release of second quarter GDP figures by Malaysia's central bank Bank Negara
Malaysia on Wednesday.
Most analysts expect second quarter growth to remain strong between 8.0
per cent and 8.5 per cent. Malaysia's first quarter GDP grew 10.1 per cent
year-on-year.
For the week just ended, the ringgit was lower at 3.1660/1690 against the US
dollar compared with the previous week's closing of 3.1460/1490.
It also eased against the Singapore dollar to 2.3288/3331 from 2.3274/3317
last and the Japanese yen to 3.6874/6913 from 3.6547/6586.
The ringgit, however, rose against the British pound to 4.9532/9589 from
4.9867/9924 and against the euro to 4.0708/0757 from 4.1489/1538.
-- BERNAMA