KUALA LUMPUR (Dec 12): The ringgit should breach its psychological level of 4.00 against US dollar based on the fundamentals including stabilising oil prices, stronger gross domestic product (GDP) at 6.2% in the third quarter of 2017 and higher exports, going into the first quarter of 2018 (1Q18).

Deputy Finance Minister I Datuk Wira Othman Aziz said the ringgit can improve further, so long as 'everything remains constant', barring US interest rate revision that is expected in January.

"The fair value should be better (in the near term). In terms of breaking the psychological threshold of 4.00 against the (US) dollar, it should go that way. We hope to see a better performance by year-end, and going into 1Q18.

"(However,) it also depends on external factors such as the US interest rate revision but (if) everything remains constant, we will see a stronger ringgit. We should and hope to see it strengthen going into 2018," he told reporters after his keynote speech at the third annual symposium on Islamic finance here.

The event was organised by World Bank Group, and Islamic Research and Training Institute in collaboration with the Global University of Islamic Finance (INCEIF).

According to economists interviewed by theedgemarkets.com, the ringgit is said to trade below 4.00 against the greenback, which is expected to weaken by 3% to 4% in 2018.

At press time, benchmark Brent crude was up 64 US cent or 0.99% at US$65.33 per barrel while West Texas Intermediate was trading up 28 US cents or 0.48% at US$58.27 per barrel.