Ringgit set to rise to 3.34 against dollar

The ringgit is set to strengthen to around 3.34 level next week against the US dollar with the greenback expected to continue to lose its attraction globally, a dealer said.

He said the bullish performance of commodities such as gold, were causing investors to shift from the US dollar to buying the precious metal and oil as alternative investments.

"We believe the broad trend towards dollar weakness remains intact," he said.

The dollar, which gained in the early session of Friday, failed to sustain as the short-covering lost steam, he said.

On ringgit, the dealer said the local unit was expected to see continuous buying as confidence of a recovery in the local economy rose on fresh developments on the local front.

Prime Minister Datuk Seri Najib Tun Razak on Friday gave assurance that that he would push hard to ensure that Malaysia is able to achieve a five per cent economic growth in 2010, two per cent more than the earlier estimate by the government.

During the week just-ended, the ringgit was traded steady against the greenback at between 3.372 and 3.384.

On Friday-to-Friday basis, the ringgit edged up against the US dollar to 3.3740/3770 from 3.3980/4020 previously.

Against other major currencies, it rose against the Singapore dollar to 2.4308/4356 from 2.4392/4455 and appreciated against the yen to 3.7414/7468 from 3.7506/7570.

The local note also advanced against the pound sterling to 5.6275/6335 versus 5.6471/6548 previously and strengthened against the euro to 5.0252/0311from 5.0617/0690 last Friday.

Source: Bernama