Ringgit expected to strengthen further
Currency set to hit RM4.20 against US dollar by year-end
THE ringgit will continue to strengthen to hit RM4.20 mark against US dollar by year-end on the back of recent good news such as higher foreign reserves and better-than-expected economic report.
The ringgit was higher against the US dollar yesterday as the greenback retreated against major currencies, and economists view the strengthening ringgit indicating improved investor sentiment towards the local currency.
MIDF Amanah Investment Bank Bhd chief economist Dr Kamaruddin Mohd Nor said the recent development in the United States after US President Donald Trump commented on the North American Free Trade Agreement had dragged down US dollar.
“On the other hand, our macroeconomic outlook looks favourable with better than expected second-quarter gross domestic product (GDP) numbers released last week, which would strengthen the ringgit,” he said.
The ringgit eased to RM4.2795 from Wednesday’s RM4.279.
“The GDP growth numbers are expected to be upward bias. The ringgit will benefit by the rebound in oil prices and sustained external sector.”
Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the economy had demonstrated its resilience amid domestic challenges.
He said the external sector exhibited commendable performance with export growth averaging at 21.2 per cent in the first four months.