RM4 to the dollar seen

KUALA LUMPUR: The ringgit is expected to weaken to the 4.00-level versus the US dollar in the next six months as investors anticipate a hike in the benchmark US federal funds rate.

The hike may come earlier than anticipated after recent indicators show growth has visibly strengthened in the world’s largest economy.

Johns Hopkins University’s Eni Professor of international economics Michael Plummer said the greenback would continue to be exceptionally strong in the next few months on market anticipation of a rate hike by the US Federal Reserve.

He told StarBizWeek on the sidelines of the 19th Asean Finance Ministers and Central Bank Governors Meetings that should the ringgit weaken towards the 4.00-level, there could be space for Bank Negara to intervene to stabilise the currency.

URL: http://www.thestar.com.my/Business/Busines...seen/?style=biz