KUALA LUMPUR, June 2 — The ringgit is expected to move between the 3.8 and 4.2 against the US dollar this year, says IQI Group Holdings chief economist/investment strategist Shan Saeed.
He said the target was achievable given good fundamentals such as the stable economic outcome, lower taxes, stable government, solid aggregate demand and steady growth infrastructure investment.
“We have seen the ringgit perform at its worst on Sept 29, 2015 and on Jan 16, 2016 against the US dollar.
“But currently, it has rebounded to a fair value,” he said at the CFO Summit
2016 themed, ‘Sustaining Competition in The New Economy: A Catalyst For Accelerating Growth’, here today.
He said the market also has responded well to Malaysia’s new fiscal measures introduced as part of the country’s recalibrated 2016 Budget announced in January.
With the improvement in global crude oil prices, which also influenced the ringgit’s movement, Shan said it had a good impact on the local note.
“Although gas contributes about 20 per cent of the country’s revenue, it has also helped drive the ringgit’s movement which also increased the confidence in capital market.
“The stability of the local note is one indicator of consumer confidence in the economy...and when there is a rebound in the ringgit, it gives consumers a lot more confidence,” he added. — Bernama
