KUALA LUMPUR – Kenanga Research has projected the ringgit to trade at 4.11 against the US dollar by year-end from its current level of above 4.40.
It believed the ringgit may gain ground and strengthen to around 4.35 by the end of the second quarter (2Q) this year, especially if the US Federal Reserve (Fed) signals that it had done enough in its next meeting in June.
“Moving forward, the local note may continue to appreciate due to solid domestic economic growth outlook and a risk-on sentiment comeback, potentially in 4Q as the Fed begins to cut rates,” Kenanga Research said in its Economic Viewpoint today.
It noted that the ringgit-US dollar pair monthly average stood at 4.424.
The local note’s performance was mainly supported by the weakening of the US Dollar Index due to the softening of the US labour market as well as China's stronger-than-expected 1Q gross domestic product reading. – Bernama, May 10, 2023
