MIDF: Ringgit won’t touch RM4 to US dollar
Despite the sudden fall in the Malaysian currency value in recent weeks, due to falling global crude oil prices and an impending rate hike by the US Federal Reserve, the ringgit should not touch the RM4 mark against the greenback.
MIDF Research said in a note today that it expects the ringgit will be range-bound between RM3.80 and RM3.90 at year-end.
“To date, none of the analyst forecast compiled by Bloomberg expect the ringgit to fall to RM4 by 2015.
“If the ringgit were to depreciate, it should have been in a timely manner rather than a sudden drop as seen in the past few weeks.
“We stand by the opinion that the current depreciation of ringgit is more due to negative sentiment rather than reflecting the fundamental condition of Malaysia’s economy.
“We would expect the current trend to continue until the Fed decides to increase their interest rate, which is most likely to be on Sept 17 this year.”