Friday 26 Apr 2024
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KUALA LUMPUR (Sept 11): Hong Leong IB Research said it is turning mildly positive on ringgit after the recent sharp rebound.

In an economic note today, the research house said it sees the ringgit appreciation bias to be sustained by a confluence of domestic and external factors.

“Externally, the process of synchronisation of global growth and monetary policy will continue to exert weakness in US dollar while firmer oil prices will boost the ringgit.

“Domestically, both low foreign holdings in upcoming maturities and higher export proceeds conversion on strong trade surplus are ringgit positive.

“Our ringgit forecast range is revised to RM4.10-4.25/US$ for remainder of 2017.

“We introduce 2018 forecast of RM3.90-4.10/US$. Key downside risks are (i) hawkish Fed keeping to its scheduled rate hike and balance sheet unwinding (ii) war outbreak,” it said.

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