Medium-term bullish outlook on the ringgit

So long as the yuan softens further and global growth sentiment worsens sharply, the ringgit should be trading at 4.34-4.35 to the dollar, with the next hurdle at 4.38-4.40, if the current driving factors continue, said Malayan Banking Bhd head, foreign exchange research, Saktiandi Supaat.

AGAINST the fall in the ringgit, the medium-term outlook is positive, buoyed by among other factors, strong commodity prices and a healthy current account surplus with strong exports growth.

A benign inflation outlook relative to Asian partners and ample foreign currency reserves should also cushion further declines in the ringgit.