Ringgit on the rise, weaker US$ and commodity prices help

Alliance Research chief economist Manokaran Mottain said the 2016 fiscal deficit target of 3.1% could be hard to achieve if the oil price remains low.

PETALING JAYA: The ringgit’s spurt against the US dollar has been a function of dollar weakness but economic reasons closer to home have seen the ringgit push on against the greenback since the second quarter of this year.

Economists do welcome the improving ringgit, which had appreciated from RM4.42 to the dollar since the start of the second quarter to RM4.19 last week, and are keeping an eye on how the stronger ringgit impacts external trade.