KUALA LUMPUR, Nov 22 (Bernama) – The ringgit is projected to appreciate more versus the US dollar next week, based on the outcome of the 15th General Election (GE15) on Saturday.
According to an analyst, the performance of the local note is projected to improve following the recent declaration by the United States Federal Reserve (Fed) that it would consider reducing the interest rate rise in the coming months.
SPI Asset Management Managing Director, Stephen Innes believes forex traders will ignore the Fed’s hawkish tone, which should benefit Malaysia’s internal and external macro variables.
Nonetheless, he agreed that the GE15 election danger is more difficult to assess.
Regardless of the GE15 results, I believe any negative knee-jerk response in the ringgit will pass as foreign exchange markets rapidly return to the Fed’s shift and China reopening, both of which are positive drivers of ringgit sentiment,” he told Bernama.