Ringgit to pick up in second half of this year

The potential for future exchange rate fluctuations for the ringgit was of concern for businesses in Malaysia

KUALA LUMPUR: The ringgit is expected to see a moderate recovery in the second half of this year against the US dollar following the improvement of the local economy.

Executive Director of ISTA Mielke GmbH, Oil World, Thomas Mielke, said for the last two to three years the ringgit has weakened considerably and people were divided whether there would be further weakening or not.

“The trading of the ringgit is expected to be on the upside, especially with the US Federal Reserve (Fed) likely to increase its interest rate this year,” he said.

He said this on the sidelines of the two-day Palm  and  Lauric Oils Price Outlook Conference  and  Exhibition 2017 here today.

It was reported that the Fed was set to increase interest rate this month by another 25 basis points and analysts said it would not portray a positive move for the US economy.

“This is where we assume there will be strength in the ringgit,” he said.

He, however, declined to say to what level the local note would rise. - Bernama