Ringgit likely to trend lower against US dollar

Publish date: Sat, 30 Nov 2013, 04:30 PM
The ringgit is likely to trend lower against the US dollar next week following the gloomy outlook expected for emerging Asian currencies in December.

A dealer said concerns that the US Federal Reserve might start scaling back its stimulus packages before the year-end prompted investors to liquidate their positions.

"The timing of the tapering remained uncertain with traders currently expecting the partial scaling back to occur in the first quarter of next year while some predicted as early as next month," he said.

Meanwhile, another dealer said the ringgit could end the year at 3.30 per dollar and weaken to 3.35 in 2014 before easing further to 3.40 in 2015.

On a week-to-week comparison, the ringgit ended lower for the sixth consecutive week at 3.2215/2245 per US dollar from 3.2140/2170 last Friday.

This was the longest losing streak since 2005 which was prompted by signs of a pickup in the US economy bolstered by speculation that policy makers will trim the stimulus package.

The local unit firmed against the Singapore dollar to 2.5678/5703 from 2.5691/5734 last Friday, rose against the Japanese yen to 3.1469/1514 from 3.1815/1848 previously.

It weakened against the British pound to 5.2604/2663 from 5.2076/2138 last Friday and declined against the euro to 4.3832/3885 from 4.3367/3420 previously.-- Bernama
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lotsofmoney

good for companies trading in USD.

2013-12-02 12:57

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