Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (Jan 19): The ringgit is expected to stabilise to the 4.40 level against the US dollar this year, said HSBC Hong Kong's head of foreign exchange research for Asia-Pacific, Paul Mackel.

However, a key risk factor for the ringgit is weaker commodity prices.

“China's renminbi is also an important part of the story. Its volatility, change in behaviour and nature. I think it is a cause of concern for many, as acknowledged in the last few weeks,” Mackel told a media briefing on economic and foreign exchange outlook here today.

Mackel is also of the view that the ringgit remains "fundamentally undervalued".

Meanwhile, he expects the US dollar to take on a "split personality" this year, that is, the greenback will likely hold up against most of the emerging market currencies, including the ringgit.

However, it will probably start to suffer against some of the major currencies, such as the yen and the euro.

Mackel said this would mirror the experience of other central banks, which had raised their benchmark interest rates, post-crisis.

      Print
      Text Size
      Share