The ringgit is expected to fall further against the US dollar in line with other regional currencies next week amid the weaker global equity market, dealers said.
Global stock indices suffered their worst one-day loss in one month, suggesting the return of the US Federal Reserve’s tapering worries.
A dealer said positive economic indicators from the US such as the rise in retail sales for November might push up the greenback but pressure the local unit even further to the 3.23 and 3.25 levels.
Good retail sales data added to signs of a recovering US economy that would encourage the US Federal Reserve closer to reducing the pace of its bond purchases.
“The market will closely monitor the Federal Open Market Committee meeting on Tuesday and Wednesday (Dec 17 and 18),” the dealer said.
However, another dealer said expectations for further stimulus from the Eurozone, after its industrial output dropped 1.1% in October, might influence market sentiments and provide room for the ringgit to appreciate further.
The ringgit would also benefit if negative data from the US emerge next week, the dealer said.
For this week, the ringgit was mostly weaker against the US dollar and other major currencies on lack of fresh leads.
On a week-to-week comparison, the ringgit was marginally lower at 3.2340/2370 versus the greenback compared to 3.2320/2350 last Friday.
The local unit was little changed against the Singapore dollar at 2.5753/5797 compared to 2.5767/5795 last week, and was marginally higher against the yen at 3.1222/1263 from 3.1637/1678 previously.
It was little changed against the British pound at 5.2863/2918 compared to 5.2821/2883 last Friday and fell against the euro to 4.4497/4544 from 4.3139/3187 previously. - The Rakyat Post
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