BNM: The ringgit is undervalued

PUTRAJAYA: The ringgit is expected to trade higher on the back of positive economic prospects, says Bank Negara Malaysia (BNM) governor Abdul Rasheed Ghaffour, while acknowledging that the currency is currently undervalued.

“The ringgit is undervalued. Given Malaysia’s positive economic fundamentals and prospects, the ringgit ought to be traded higher,” Abdul Rasheed said yesterday, as the currency hit a 26-year low on Feb 20 to trade at RM4.80 to the US dollar.