The ringgit is expected to trade lower against the US dollar next week amidst Asia’s slowing economy and weak economic data from China, dealers said.
China’s July exports climbed one per cent compared with the same month last year, the weakest since 2009, marking a big pullback from June’s year-on-year growth of more than 11 per cent, due to the more than 16 per cent fall in shipments to the European Union.
A dealer said the data, along with softer inflation and industrial output, bolstered expectations of fresh Beijing action to support the world’s second-largest economy.
However, such expectations have already been factored in most Asian currencies by traders, he said.
“The ringgit is likely to trade between RM3.12 and RM3.13 level against the greenback,” a dealer said, adding the movements of the local currency for next week were also expected to be in line with other Asian currencies.
Bank Negara is also scheduled to announce Malaysia’s second quarter gross domestic product report on Wednesday next week.
On a Friday-to-Friday basis, the ringgit closed higher against the US dollar at 3.1155/1175 from 3.1280/1310 last Friday.
Meanwhile, the ringgit was traded mostly higher vis-a-vis other major currencies.
It appreciated against the Singapore dollar to 2.4998/5030 from Friday’s 2.5080/5124 and rose against the yen to 3.9673/9718 from 3.9990/9038 previously.
The local currency firmed against the British pound to 4.8596/8639 from 4.8612/8668 but eased against the euro to 3.8261/8295 from 3.8202/8242 last Friday.
Source: Business Times Dated: 11/08/2012
