Deputy Finance Minister I Othman Aziz today agreed with bankers’ forecast that the ringgit would rebound to a fair value of 4.1 against the US dollar in the third quarter of the year.
Bankers had forecast the rebound based on improving commodity prices such as rubber and palm oil, as well as, steady economic fundamentals, he said.
At 1.11pm, the ringgit stood higher at 4.4840/4890 against the greenback, after opening at 4.4870/4900 at 9 am, following improved oil prices which was expected to rake in higher revenue for the government.
Brent crude futures, the international benchmark for oil prices, is still hovering above US$55 per barrel.
“This is a cycle and it is not the first time we are experiencing this because we have seen the worst level of 5.3 before,” he told a press conference after visiting the Credit Counselling and Debt Management Agency today.
Othman said investors would continue to remain on the sidelines until US President-elect Donald Trump’s swearing-in ceremony on Jan 20, 2017.
“Some people say something worse will be coming, but we will first wait for Trump’s swearing in. What you are hearing now is not a firm thing, it’s just hearsay,” he added. – Bernama