AmBank Group Research expects the ringgit to continue trending on a more positive momentum supported by political stability with now the focus on the cabinet line-up plus the decision by Prime Minister Datuk Seri Anwar Ibrahim to moot for a “confidence” vote on December 19 when Parliament convenes.
In an statement on Tuesday (Nov 29), AmBank group chief economist and head of research Dr Anthony Dass said that the ringgit will be supported by positive portfolio inflows and business as well as consumer confidence.
“Room for ringgit to reach 4.40 level is on our cards despite the dollar play still lingering but expected to lose momentum,” he said.
Dass said the ringgit has appreciated 0.10% to 4.480.
He said the political situation in Malaysia continues to be on the positive side as Fitch Solutions Country Risk and Industry Research has raised Malaysia’s score on its Short-Term Political Risk Index to 67.3 (out of 100), from 64.8 previously.
Dass said this reflects the progress made in the formation of the new government, which has lessened the political uncertainty and noises.
“For today, we expect the ringgit to trade between our support level of 4.440 and 4.450 while our resistance is pinned at 4.520 and 4.530,” he said.
