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PETALING JAYA: The interest rate differential in favour of the US dollar and safe haven status will continue to keep the currency strong until inflation expectations and interest rates projections top off and policymakers start to roll back measures.
The ringgit closed lower at RM4.609 against the dollar yesterday after the runaway greenback closed at 114 on the dollar index on Monday. More gains could be on the cards, said analysts.
“We expect the dollar to maintain its strengthening momentum in the near term despite concerns of a sharp slowdown or mild recession brewing driven by Federal Reserve’s (Fed) continuous tightening momentum,” said AmBank Research Group chief economist and head of research Anthony Dass.
He added with the ringgit now having crossed 4.60 levels, it is now expected to weaken to 4.65 in the near term.
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