Oops! We could not locate your form.Click to close
Adjust Font Size:
KUALA LUMPUR, 18 April 2017:
The Malaysian Institute of Economic Research (MIER) estimates the ringgit’s fair value based on economic fundamentals to be at RM4.20 to the US dollar.
At 9.03am today, the ringgit was traded at 4.4070/4120 against the greenback, down from the 4.4030/4060 recorded at 6pm yesterday.
Senior research fellow Dr Zulkiply Omar said the value is based on the strength of the economy and the demand for ringgit as exports grow in tandem with the global economic growth.
“However, the undervalued trading of the ringgit is currently influenced by sentiment which is also a factor of currency volatility.
“Sentiment normally influences the ringgit through capital flow. Every time something happens, economically related or whatever the factor, the sentiment influences people and their decision to move capital in and out of the country.”
Speaking at MIER’S 22nd Corporate Economic Briefing here today, Zulkiply said Bank Negara Malaysia’s measures to clamp down on the ringgit non-deliverable forward trades and aimed at curbing speculative activity on the offshore market in November last year, helped reduce volatility in the ringgit.
Going forward, he said the ringgit is expected to improve in line with the global economy.
“The World Bank and International Monetary Fund expect world demand this year to grow when compared to last year.
“So, (our) expectation is that, Malaysia’s exports will increase and influence demand for the ringgit, which is expected to improve in turn.”
17 Jan 2017, 07:01PM
25 Aug 2016, 06:08PM
4 Dec 2015, 03:12PM
10 Sep 2015, 05:09PM
4 Jun 2015, 04:06PM