Uncertainties cloud ringgit’s true value

True value: Eventually, the fundamentals of the economy will begin to reflect the value of the ringgit.

ASK any currency or fixed income strategist in town and they will tell you that the ratio between the local currency and the US dollar should be about RM3.68 to US$1. Now the official conversion rate is closer to RM3.80 for US$1.

There are several reasons for the ringgit not living up to its valuation.