KUALA LUMPUR, April 18 (Bernama) — The ringgit is likely to be higher next week on optimism that the country’s economy is heading for a recovery, dealers said.

“Demand for commercial purposes is expected to be modest with expectations of gradually higher economic activities,” said the dealers.

During the week, Bank Negara Malaysia (BNM)Governor Tan Sri Dr Zeti Akhtar Aziz said the country’s economy would be in a better position in the second half of 2009.

She said the country was seeing some stabilisation taking place.

The dealers said external factor would also influence the expected higher movement of the ringgit next week.

“Confidence is rising over the recovery of the United States financial system,” they said.

The positive earnings achieved by the US-based Goldman Sachs and JP Morgan this week, could give some relief to the local market fraternity.

“It could be a strong indication that the US financial sector is stabilising,” the dealers added.

Zeti also noted during the week that efforts to internationalise the ringgit would have to be done at a more stable time and not in uncertain conditions.

During the week, the local unit traded mostly mixed against most major currencies.

On a week-to-week basis, the ringgit was slightly lower against the US dollar at 3.6140/6190 from 3.6135/6185 last Friday.

The ringgit was lower against the Singapore dollar at 2.4055/4112 from 2.3781/3861 as well as against the yen at 3.6406/6467 from 3.5970/6026 .

It was weaker against the British pound at 5.3476/3568 from 5.2858/2942 but higher against the euro at 4.7253/7329 from 4.7449/7525 last Friday.

– BERNAMA

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