Ringgit may gain against greenback

The ringgit is likely to gain against the US dollar next week as a
stronger economic data from the US could boost confidence in the
equities markets and increase the appetite for riskier
investments as well as Asian currencies, dealers said.

According to latest statistics, the private sector in US increased
hiring in December to the highest level for the year while new claims
for US unemployment benefits fell is the same month.

According to a Reuters poll, investors turned bullish on the Singapore dollar and the Malaysian ringgit.

"Asian currencies will outperform reflecting the
resilience in the Asian economy boosted by domestic consumption and increasing foreign funds into the region," a dealer said.

During the week, the ringgit and Singapore dollar climbed to record
highs against the US dollar on increased global funds to the region even
if gains were limited with the still unresolved Euro-zone debt crisis.

The ringgit also gained significantly against the euro in line with the
weakening of the euro currency against major currencies, plagued by the
region's unresolved debt crisis.

The euro hit a 16-month low against the greenback on Friday.

The ringgit meanwhile retreated from its recent advances on Friday, as
investors took profit with sentiments turning cautious amid the still
unresolved euro zone debt crisis.

On a Friday-to-Friday basis,
the ringgit was sharply higher against the US dollar at 3.1490/1520 from
3.1670/1700 last Friday and rose against the Singapore dollar to
2.4335/4368 from 2.4350/4373.

The local unit was however lower against the yen at 4.0817/0871 from4.0796/0845 last Friday.

It also depreciated against the British pound to 4.8838/8897 from
4.8807/8862 last Friday but strengthened against the euro to 4.0326/0377
from 4.0911/0960. -- Bernama