KUALA LUMPUR, Aug 15 (Bernama) -- The ringgit is likely to be higher against the US dollar next week following the more upbeat outlook for stock markets, dealers said.
"The positive market sentiment on Bursa Malaysia will encourage more buying of the local currency," one of the dealers said.
Analysts said that signs of the Asian economies coming out from an economic downturn will add confidence to the equities markets and boost Asian currencies.
Asian markets rebounded on Thursday following the US Federal Reserve's decision to keep key interest rates near zero.
The improved market sentiment in Asian markets was also driven by news of an improved global economic outlook after Germany and France reported economic growth in the second quarter of the year.
According to the analysts, the improving economic outlook in the European zone helped to offset weak US retail data.
During the week, the ringgit rebounded against the US dollar on Thursday as gains in share prices on the local bourse helped to boost demand for the local currency.
"However, government intervention could cap advances in Asian currencies," a dealer said.
The ringgit ended the week weaker against the US dollar, reversing its earlier gains as it came under selling pressure on suspected intervention by the authorities to rein in the ringgit's advance.
The dealers said the authorities tracked the movements of regional currencies, especially Asian.
On Friday, the Singapore dollar advanced against the US dollar but its strength was capped by concerns about possible intervention by the central bank.
It was also widely believed that the Thai central bank intervened in the market to contain the baht's advance.
On a week-to-week comparison, the ringgit ended the week lower against the US dollar at 3.5170/5210 from 3.4990/4020 last Friday.
The ringgit also weakened against the Singapore dollar at 2.4363/4414 on Friday, down from 2.4343/4384 last Friday, and was also weaker against the Japanese yen at 3.6939/7001 from 3.6770/6813 previously.
However, the local currency strengthened against the British pound at 5.8220/8304 on Friday from 5.8507/8571 last Friday as well as against the euro at 5.0223/0297 from 5.0239/0292 previously.link...
"The positive market sentiment on Bursa Malaysia will encourage more buying of the local currency," one of the dealers said.
Analysts said that signs of the Asian economies coming out from an economic downturn will add confidence to the equities markets and boost Asian currencies.
Asian markets rebounded on Thursday following the US Federal Reserve's decision to keep key interest rates near zero.
The improved market sentiment in Asian markets was also driven by news of an improved global economic outlook after Germany and France reported economic growth in the second quarter of the year.
According to the analysts, the improving economic outlook in the European zone helped to offset weak US retail data.
During the week, the ringgit rebounded against the US dollar on Thursday as gains in share prices on the local bourse helped to boost demand for the local currency.
"However, government intervention could cap advances in Asian currencies," a dealer said.
The ringgit ended the week weaker against the US dollar, reversing its earlier gains as it came under selling pressure on suspected intervention by the authorities to rein in the ringgit's advance.
The dealers said the authorities tracked the movements of regional currencies, especially Asian.
On Friday, the Singapore dollar advanced against the US dollar but its strength was capped by concerns about possible intervention by the central bank.
It was also widely believed that the Thai central bank intervened in the market to contain the baht's advance.
On a week-to-week comparison, the ringgit ended the week lower against the US dollar at 3.5170/5210 from 3.4990/4020 last Friday.
The ringgit also weakened against the Singapore dollar at 2.4363/4414 on Friday, down from 2.4343/4384 last Friday, and was also weaker against the Japanese yen at 3.6939/7001 from 3.6770/6813 previously.
However, the local currency strengthened against the British pound at 5.8220/8304 on Friday from 5.8507/8571 last Friday as well as against the euro at 5.0223/0297 from 5.0239/0292 previously.link...
