Ringgit likely to remain at current level next week

The ringgit is expected to remain steady at the current level of 3.81 level against the US dollar next week due to lack of market moving factors.

Despite the generally weak market sentiment, a dealer said the ringgit remained supported as investors, unnerved by the latest political development, continued to buy Malaysian assets.

Furthermore, foreign holdings of ringgit-denominated bonds, which were still high at between 45 and 47 percent, also kept the ringgit supported.

"The ringgit is definitely undervalued at the current level as it does not reflect the country's strong fundamentals.

"Prevailing hints and talks over a possible US interest rates hike has fuelled the dollar's strength for so long, causing many emerging regional currencies to succumb to selling pressure including the ringgit," he added.

For the just-ended week, the ringgit traded lower against the US dollar at 3.8230/8260 from 3.8080/8100 recorded last Friday.

The local currency also fell against the Singapore dollar to 2.7775/7799 from 2.7763/7798 last week and weakened against the yen to 3.0771/0800 from 3.0715/0733 last Friday.

It declined against the pound sterling to 5.9509/9563 from 5.8978/8017 last week and was easier against the euro at 4.1816/1860 from 4.1652/1678 previously.