KUALA LUMPUR: The ringgit is likely to remain weak at around RM3.60-RM3.70 against the US dollar in the near-term due to the large foreign holdings of fixed income instruments in Malaysia, says RHB Research.
“Meanwhile, an expectation of the US increasing interest rates and the risk of a possible sovereign credit rating downgrade by Fitch Rating, could still come back to haunt the ringgit again,” it said in a note today.
RHB Research said the foreign exchange reserves posted an increase of US$700 million in April to US$105.8 billion as at April 30.
In ringgit terms, the foreign exchange reserves rose by RM2.7 billion in March to RM392.4 billion as at April 30.
RHB Research added that the figure was slower than the increase of RM3.7 billion in the previous month, due mainly to a revaluation gain as the ringgit weakened against major currencies. – BERNAMA