KUALA LUMPUR, Jan 5 (Bernama) -- The ringgit is expected to strengthen further against the greenback next week amid rising concerns on a possible cut in the U.S. interest rate, dealers said.
They said traders believed that the U.S. Federal Reserve would cut the U.S. interest rate this quarter to boost the economy.
Dealers said the uncertain situation in the U.S. economy will continue to pressure the dollar but favour the ringgit and if the trend continues, the local unit is likely to breach the 2.7 level to a U.S. dollar next week.
One of the dealers said the uptrend of the local unit was also related to the strengthening of China's yuan after its government pledged to maintain a tight monetary policy this year.
The yuan touched 7.2930 to a U.S. dollar last week, the strongest since its depegging in 2005.
The market was closed on Tuesday for the New Year holiday.
During the week just ended, the ringgit marked a 10-year high against the US dollar on Thursday at 3.2885/2915, the strongest since November 1997.
It retained the strong note on Friday, closing at 3.2800/2840 against the dollar compared with last week's quotes of 3.3160/3210.
Against other major currencies, it was higher against the Singapore dollar at 2.2868/2914 from 2.2916/2943 the week before but was lower against the Japanese yen at 2.9987/3.0038 from 2.9270/9301 previously.
The ringgit also appreciated against the pound sterling to 6.4642/4731 from 6.6177/6250 and against the euro to 4.8299/8361 from 4.8583/8663 the Friday before.
-- BERNAMA
Source :Bernama
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