Malaysian ringgit banknotes of various denominations are arranged for a photograph in Tokyo, Japan. - Kiyoshi Ota/Bloomberg
KUALA LUMPUR: The ringgit is likely to continue its uptrend against the US dollar this week, trading between the 4.38 and 4.41 level for the first week of the new year on the back of buying support from locals upon the ringgit’s weakness, says an analyst.
SPI Asset Management managing director Stephen Innes said expectations remained extremely bright for the ringgit as one of the favourite expressions for the China reopening, given that Malaysia is a big consumer goods exporter into the country and a keen tourist destination for Chinese tourism.
He told Bernama that this week, markets would start to place markers on expected bullish destinations.
He said factual evidence of stability in the new government would diminish the political risk premium that had been embedded into the ringgit in recent years.
