US dollar correction may boost ringgit rebound

Maybank Kim Eng head of foreign exchange research Saktiandi Supaat told StarBiz that the greenback, which had been bullish against major currencies, would strengthen against the ringgit to between 4.25 and 4.30 before retreating to the 4.10 or 4.15 level by year-end.

A US dollar correction, if it happens, may slightly boost the ringgit for which the rebound, based on mainly on fundamentals, will likely be gradual.

Amidst that general view, some economists see the US dollar to potentially not strengthen too much in the long-term, especially in view of, among other factors, export competitiveness.