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Tuesday, January 10, 2017

Ringgit to hit 4.6 to the dollar this year?

The ringgit is forecasted to reach 4.60 against the US dollar in June this year before retracing to 4.30 in early 2018.

Standard Chartered Bank FX Strategist for Asean and South Asia Divya Devesh said the ringgit has been disconnected from fundamentals and can remain under pressure for the first half of 2017.

He said the major risk factors for the ringgit are the US Federal Reserve's rate hikes and the stability of the Chinese Yuan against the US dollar.

However, Divya does not expect the ringgit to weaken further than 4.60 as Malaysia's fundamentals are still strong and valuations attractive.

Posted by Eva Yeong

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