Ringgit likely to strengthen to 3.8 to US$1 by year-end


Riskier currencies were trading on a poor footing, given the firmer dollar and negative global equity sentiment.

KUALA LUMPUR: The ringgit, which has been on the downtrend against the greenback lately as a result of solid US economic growth, is expected to stabilise and become stronger by year-end.

Affin Hwang Capital chief economist Alan Tan said the ringgit was expected to appreciate to RM3.80 against the US dollar given the country’s strong economic fundamentals and trading activities.

“We think the economic fundamentals will support the ringgit towards the end of 2018.

“While we think the currency will remain volatile in the short term, it will strengthen in the fourth quarter and rise towards the 3.80 level by end of this year,” he told reporters after a Business Outlook Post-GE14 forum organised by the Malaysia-China Chamber of Commerce here on Saturday.

Tan said Bank Negara’s measures to stabilise the ringgit such as the conversion of 75% of export proceeds held in a foreign currency into the local unit would also help boost the value of the currency as well as monetary inflows into the country.

“The economic fundamentals as well as Bank Negara’s requirement, as announced in December 2016, for exporters to convert their proceeds, will create demand and support for the ringgit,” he pointed out.

Last Friday, the ringgit ended higher against the US dollar on renewed buying interest.

The ringgit stood at 4.0600/0630 against the US dollar from 4.0620/0650 on Thursday.

Asked about the China-US trade dispute, Tan expressed confidence that it would not escalate into a global trade war.

“At the moment, our assumption is it will not escalate into a global trade war.

“We think it is highly likely that there will be a compromise between the United States and China,” he added. — Bernama

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3

Business , Ringgit , dollar , US , year-end , 3.8 , Affin , Alan Tan , economyMalaysia ,

   

Next In Business News

Asia shares spooked by US inflation scare, hope for Fed calm
Asia shares spooked by US inflation scare, slip to 7-week lows Thursday
Bitcoin ticks back in Asia after Musk tweet sent price down 17%
Tesla stops taking bitcoin payments for vehicles over climate concerns
Vegetable Oils surge, Soy futures reach highest since 2012
Jobs, inflation data surprises not changing Fed plans
Oil price rises to 8-wk high on demand hopes, U.S. export decline
GLOBAL MARKETS-Wall Street skids on inflation fears; USD, bond yields jump
Capitalising on loan growth
Teo Seng invests in new equipment

Stories You'll Enjoy


Vouchers