KUALA LUMPUR (Jan 12): The ringgit is expected to weaken further against the US dollar at RM3.65 in the second quarter of this year, according to Standard Chartered Global Research.
According to Edward Lee, who is Standard Chartered's head of macro research in Southeast Asia, the ringgit is likely to strengthen at the end of the year against the US dollar.
"We're looking at a trajectory with the ringgit hitting RM3.65 in the second quarter of 2015 before strengthening at the end of the year to RM3.55 against the US dollar," Lee said during Standard Chartered Global Research's briefing today.
At 2.30pm, the ringgit changed hands at RM3.5520 versus the US dollar. This compared to the firmest level over the last six months at RM3.1415 on August 28, 2014.
Lee said with weaker market sentiment and continued weakness of the ringgit, Malaysia's trade balance figures would be in focus.
"The worry is the impact from low oil prices, but the economy's fundamentals remain solid," said Lee.