PETALING JAYA: The ringgit’s pullback to the RM4 level against the US dollar appears overdone, with analysts saying the recent weakness is being driven more by a bout of global risk aversion than by any serious deterioration in fundamentals.
Similarly, the ringgit’s weaker showing against the Singapore dollar (SGD) reflects the same risk-off dynamics, as investors rotate into safe-haven currencies amid heightened geopolitical uncertainty.
After strengthening from RM3.16 in mid-January to RM3.06 by mid-March, the ringgit looks to be giving up those gains against the SGD, easing to around RM3.12 yesterday.
iFAST Capital research analyst Kevin Khaw Khai Sheng said the current US dollar-ringgit level is “more or less” in line with expectations but added that the currency pair appears oversold.
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