Ringgit to hit 3.13 level next week: HLB

The ringgit is expected to hit a 28-month high of 3.13 level next week, the highest since April 2008, said Hong Leong Bank Bhd(HLB)Fixed Income & Economic Research in its research note today.

It said the local unit will remain strong to trade between 3.1300 and 3.1900in the near term on the appeal of higher-yielding Asian currencies amid uncertain outlook in US and uneven recovery in Europe.

"The ringgit rose to its strongest level on Monday since April this year assigns that Asian economic growth remained resilient boosted demand for higher-yielding assets," it said.

The bank said the local currency hit a new high in tandem with the strengthening of most Asian currencies against the US dollar and euro.

Next week, it said, Singapore was forecast to post second quarter gross domestic product growth of 19.3 per cent year-on-year.

It said while Hong Kong will show 6.3 per cent year-on-year gain,underscoring a still robust Asian economic growth underpinned by strong inter-regional trade.

Upbeat growth numbers were expected to fuel demand for the local unit next week, it said. - Bernama

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