Malaysian Ringgit To Trade At 3.95 To US Dollar By Year-End - HSBC Global Research

KUALA LUMPUR, Sept 22 (Bernama) -- HSBC Global Research has maintained its forecast for the Malaysian ringgit to trade at 3.95 against the US dollar by the end of this year and 3.85 by end-2017. However, it said the local currency recovery should follow a bumpy path due to subdued oil prices, poor foreign exchange liquidity and political uncertainty. "We await better levels to sell the US dollar for the ringgit. Opportunities may arise after risk events in September-October (Bank Negara Malaysia bills redemption and 2017 Budget) have passed," it said in a research note on Wednesday. The research firm said that Malaysia had been benefiting from strong intra-Asia foreign direct investment and portfolio investments, while traditional European and United States' investors had remained on the sidelines. "The ringgit can be considered a relatively high-yielding currency in Asia too, and indeed, it has seen sizeable foreign portfolio inflows for the year to date. "We are looking for US dollar-ringgit to fall. We believe its degree of undervaluation today is excessive, given its improved international investment position," it said. Notably, it said Bank Negara Malaysia (Malaysia's central bank) appeared to be least opposed to the local currency appreciation within the region. --BERNAMA