Economist says ringgit will hit high of 3.43-3.45 against Singapore dollar by year-end

Publish date: Tue, 11 Jun 2024, 10:24 AM

KUALA LUMPUR: The ringgit, which has appreciated significantly against the Singapore dollar in recent months, is projected to stabilise further by the year's end, ranging between 3.43 to 3.45, a prominent economist said today.

Factors boosting demand for the ringgit include foreign direct investments flowing into Malaysia, particularly the Johor-Singapore Special Economic Zone (JS-SEZ), said Bank Muamalat Malaysia Bhd's chief economist Dr Mohd Afzanizam Abdul Rashid.

"There has been good traction on the Malaysian economy, especially in foreign direct investment.

"Big names entering Malaysian shores and the JS-SEZ create interest in Malaysian assets,"  he told Bernama when responding to the strengthening ringgit versus the Singapore dollar.

On Feb 20, 2024, the Malaysian ringgit peaked at RM3.5682 versus the Singapore dollar. Currently, the currency pair fluctuates around RM3.4868, reflecting a 2.3 per cent gain.

Mohd Afzanizam also highlighted the synergistic efforts between the government, government-linked companies, and government-linked investment companies, fostering an environment conducive to greater conversion of foreign currencies into the Malaysian ringgit.

However, he cautioned that the sustainability of the local currency's surge might depend on external factors, particularly decisions by the US Federal Reserve regarding interest rates.

The recent Non-Farm Payrolls report, a key indicator of the US labour market, has prompted a reassessment of rate cut expectations.

"The US Federal Reserve's cautious stance, driven by a strong labour market, may delay any potential easing of monetary policy, impacting global currency dynamics," he added.

  - Bernama

Be the first to like this. Showing 0 of 0 comments

Post a Comment