Mainstream
Stronger ringgit may not excite the market
Ng Wai Mun | 10 Nov 2017 00:30
Ambank Research expects the ringgit to trade around RM4.25 against the US dollar in 2018 with a year-end target of RM3.95

The ringgit is projected to appreciate by 5.7% to touch RM4 against the US dollar from the current RM4.23 within the next few months on the back of improving oil prices. This will bring some cheer to Malaysians, especially importers and those paying for goods and services in the greenback.

Nevertheless, investors question how a relatively stronger ringgit dollar will impact the economy, with views ranging from neutral to negative.

“The first thing I expect to happen if it touches RM4 (against the US dollar) is foreign investors will sell to capitalise on gains from foreign exchange,” an economist tells FocusM.