Bank Muamalat's Mohd Afzanizam said that bargain-hunting activities suggest further appreciation of the ringgit may be in the offing.
KUALA LUMPUR: The ringgit made a correction from its oversold position to end yesterday on a positive note against the US dollar.
At 6pm, the ringgit inched up to 4.7825/7865 against the greenback from Monday’s close of 4.7900/7975, its lowest level versus the dollar in 25 years.
Bank Muamalat Malaysia Bhd chief economist and social finance head Dr Mohd Afzanizam Abdul Rashid said bargain-hunting activities suggest further appreciation of the ringgit may be in the offing.
On top of that, he believed the ringgit could also receive renewed interest due to some positive development on the Israel-Hamas conflict.
“On Monday, two hostages were freed by Hamas along with the arrival of humanitarian aid in Gaza.
“However, markets are still anxious about the possible ground offensive by the Israelis and when that happens, how it will change the dynamics of the present conflict,” he told Bernama.
Bank Negara said the current ringgit movements appear to be more heavily influenced by global events and do not reflect the nation’s economic fundamentals.
Therefore, governor Datuk Abdul Rasheed Abdul Ghaffour will ensure that the central bank does whatever is necessary to ensure the ringgit continues to adjust in an orderly manner.
The ringgit, however, eased versus a basket of major currencies.
It slipped against the euro to 5.0881/0924 from 5.0736/0815 at the close on Monday, decreased versus the British pound to 5.8557/8606 from 5.8179/8270 (on Monday) and fell against the Japanese yen to 3.1960/1989 from 3.1935/1985 previously.
