Markets
Prospects intact for ringgit to firm against USD
Cheah Chor Sooi | 07 Jul 2017 00:30
Analysts are cautiously optimistic that the ringgit will shine in the second half (H2) after posting a 4% appreciation against the greenback to close at 4.2928 per US dollar as the curtain came down on the first half (H1).

PublicInvest Research described the local currency as having reached the halfway mark towards its expectation of hitting at least 4.10 to 4.15 in H2 after having dived to a fresh 19-year low of 4.4975 against the greenback on Jan 4.

The research house based its prediction on (i) further capital inflows owing to the strength in the domestic economic recovery, and (ii) less pronounced bond-related outflows as interest rate volatilities take a temporary backseat, amongst others.

Moreover, Bank Negara Malaysia’s (BNM) move in end-2016 to compel exporters to convert a portion of their US dollar proceeds into ringgit is also expected to provide further support.

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