RINGGIT POSTS BEST PERFORMANCE FOR THIS YEAR

KUALA LUMPUR, March 25 (Bernama) -- The ringgit posted its best performance
for this year driven by Asian currencies as well as investor confidence in the
Malaysian economy, a currency trader said.

The ringgit closed at its 13-year high of 3.02 against the US dollar Friday.


Besides the ringgit, regional currencies like South Korean won hit a
one-month high while the rupiah was at a fresh four-year peak.

The trader said Bank Negara Malaysia (BNM), Malaysia's central bank would
prefer to see a strong ringgit to help contain imported inflation, adding that
the ringgit was now eyeing 3.00 level against the US dollar.

"For now, the ringgit would stay firm at 3.02 per dollar. However, it could
hit 3.00 level in a month or two if the trend continues," he said.

Although stronger currency would pose a threat to exporters, at the same
time it would make imports cheaper, he said.

Another factor that drove the ringgit higher was possible interest rate rise
to curb inflationary pressures, which would strengthen the ringgit and in turn
attract investors seeking higher returns, he said.

The trader said Asian currencies, including the ringgit, were on rising
trend as emerging economies were on a strong economic growth path.

"Investors are now looking at Asia at the time of global economic recovery
and ample liquidity," he said.

Malaysia is targeting a 5-6 per cent gross domestic product growth this year
despite global uncertainties like Japanese crisis and ongoing Middle East
tension.