Ringgit likely to see further downside

The ringgit, which was weaker against the US dollar in the week just
ended, is likely to retreat further next week to within the 3.0130 and
3.0200 levels, dealers said.


The local unit is also expected to see a further downside next week as demand is centered on the greenback, a dealer said.


"The market is liquidating long commodities and long Asian currencies now. This is expected to contribute to a weaker ringgit.


"While the outlook of the US non-farm payroll data to be released
today would determine the currency market movement next week, it is most
likely to push the local currency lower," he said.





Another dealer said, the US payroll result is also expected to
influence the commodity market that is poised for a further downside
next week.


"This would trigger investors to liquidate more long positions in regional currencies, including the ringgit," he said.


For the week just ended, the ringgit traded weaker and closed at
3.0055/0085 against the US dollar compared with 2.9600/9620 last
Friday.


Bank Negara Malaysia on Thursday increased the benchmark overnight
policy rate (OPR) to three per cent from 2.75 per cent, up 25 basis
points, while the statutory reserve requirement will rise to three per
cent from two per cent, effective May 16.


However, the announcement did not have much effect on the forex market.


The ringgit eased against the Singapore dollar to 2.4295/4339
from 2.4158/4197 last Friday and the Japanese yen to 3.7424/7480 from
3.6345/6379 previously.


It advanced against the British pound to 4.9252/9307 from
4.9395/9441 last Friday and against the euro to 4.3665/3717 from
4.3992/4036 previously. -- Bernama