United Overseas Bank Malaysia (UOB Malaysia) senior economist Julia Goh said the ringgit would likely range between 4.05 and 4.10 against the US dollar in the near-term before a subsequent move towards 4.15 and 4.18 by mid- and end-2019, respectively, underpinned by the US Federal Reserve resuming its rate hikes in June and December.
“The ringgit remains undervalued compared to its peers and ringgit-denominated assets may offer safe-haven defence amid regional election events in the first half of 2019,” she said in a note.
During the week just ended, the local unit was mostly traded lower against the US dollar due to worries over the outcome of the US-China trade talks.
However, the ringgit managed to climb to its six-month high of 4.0650/0690 against the US dollar on Wednesday after President Donald Trump commented that the US could extend the 90-day truce with China.
On a Friday-to-Friday basis, the ringgit was lower at 4.0870/0900 against the US dollar from 4.0670/0720 previously.
It also depreciated versus the Singapore dollar to 3.0082/0116 from 2.9988/9029 and weakened against the euro to 4.6110/6152 from 4.6059/6124.
However, the ringgit inched up against the Japanese yen to 3.7013/7050 from 3.7023/7079 and rose against the British pound to 5.2354/2409 from 5.2590/2667 last Friday. — Bernama
Source: The Sun Daily