Ringgit within reach of 3.95 to US$

KUALA LUMPUR: The ringgit which has breached the critical 3.98 barrier to the US level is well within reach of the 3.95 level within the short term.

OANDA Corp head of trading Asia Pacific, Stephen Innes said on Monday his expectation was based on a technical perspective as the stars continue to align for the ringgit.

Other positive factors are higher oil prices, a weaker US dollar trend emerging, US equities surging, stable domestic economic landscape and a Bank Negara Malaysia rate hike in the offing.

“However, given that the market has been milking the same signals for the past three months, the real question is where the next major catalyst will emerge?

“Malaysia will be the clear winner from Belt & Road Initiative (BRI) as China will continue to export excess capacity through foreign direct investment while expanding construction contracts to improve critical forks in BRI  transport networks.

“This resulting domestic economic growth from BRI will add significant points to the recent ringgit outperformance,” said Innes.

The ringgit was last traded at 3.9724.