Oanda research house head of trading (APAC), Stephen Innes opined that while investor confidence will be tested during this sudden uptick in volatility, the ringgit will be more than up for the task.
“We should not lose sight of the great strides that the ringgit has made over the past 12 months,” he said.
As the Malaysian market continues to remain robust, the expectations from the market is that Bank Negara (BNM) is preparing to raise interest rates yet again.
“Equity and bond markets will continue to attract investors who want exposure in the ringgit. We still hold the view that the ringgit will be less susceptible to other regional currencies as BNM could increase interest rates again” he said.
The ringgit was higher against the U.S. dollar early Wednesday on renewed buying interest and amid the better performance of Bursa Malaysia.
At 9am, the ringgit stood at 3.8970/9000 against the greenback from Tuesday’s close of 3.9135/9165.