Ringgit to recover on investor confidence

Currency concerns: A money changer holding the ringgit and US dollar in a shopping mall. One of the main contributing factors to the ringgit’s weakness since the end of January is the continued rate hikes to the federal funds rate by the Fed this year.

THE ringgit had been widely traded since a recent report from a leading bank, which had speculated the local currency to weaken towards RM4.70 per US dollar. The ringgit had been hovering around RM4.60 to RM4.62 per dollar for a few days.

On June 1, 2023, the exchange rate stayed firm at RM4.61 per dollar.