Will the global uncertainties cap ringgit’s upside?

KUALA LUMPUR: The ringgit, which has been on an upward trend over the past two months, has gained 1.5% against the US dollar year to date. Economists, however, have different views as to how the local currency will perform for the rest of this year given the continued global uncertainties.

RHB Research, for one, thinks the ringgit will appreciate to 3.80 against the greenback by the year end.

It said Malaysia’s heightened foreign exchange (forex) reserves and the dovish tone set by the US Federal Reserve (Fed) have lent support, resulting in further US dollar weakness.