Ringgit to stay uncertain next week

The ringgit is expected to remain uncertain against the US dollar in the
first trading week of the New Year as investors look ahead for fresh
leads against the backdrop of the eurozone debt crisis, dealers said.

Investors are likely to remain sidelined, awaiting more positive news regarding the Italian debt crisis, a dealer said.

"I think Asian currencies would remain uncertain until the euro starts to recover," he said.

Italy's
debt sales this week saw its borrowing costs ease generally, but it
remained unsustainably high, especially for a country needing to raise
450 billion euros (US$580 billion) through debt issuance in 2012.

"The eurozone's third largest economy remained at the centre of the
debt crisis and its borrowing needs could overcome the bloc's financial
defences if it was forced to seek an international bailout," another
dealer said.

In contrast, the US economic outlook continued to improve with positive data emerging from a regional factory survey.

"A separate report also added to signs of a tentative recovery in the housing market," the dealer said.

For
the week just-ended, the ringgit ended lower at 3.1670/1700 per US
dollar compared with last week's 3.1550/1600 but finished mostly higher
against other major currencies.

It strengthened against the
Singapore dollar to 2.4350/4373, from 2.4403/4460, previously, but
weakened against the yen to 4.0796/0845, from 4.0423/0508, last week.

Against
the British pound, it firmed to 4.8807/8862, from 4.9527/9615,
previously and appreciated against the euro to 4.0911/0960, from
4.1242/1317, last week.

The market will be closed on Monday for the New Year. -- Bernama