KUALA LUMPUR, Jun 25 – The ringgit is likely experience further correction next week to RM4.15 per US dollar following the shocking referendum by Britain to exit the European Union (EU). Affin Hwang Investment Bank Vice-President/Head of Retail Research, Datuk Dr Nazri Khan Adam Khan, said the correction was a knee-jerk reaction and was out of regulatory control as it also happened in other emerging economies.
He said, nevertheless, the situation provides an opportunity to buy cheap. He said, but what is more important is that investors’ psychology and hopefully there is no panic selling. For the holiday-shortened week just-ended, the ringgit was traded mostly higher against the US dollar driven by optimism on Britain staying in EU but the sentiment quickly faded on Friday after vote to exit the economic bloc took the lead during vote counting.
The market was closed on Wednesday for the Nuzul Al-Quran holiday. On a Friday-to-Friday basis, the local unit was higher at 4.0850/0950 against the US dollar from 4.0970/0030 in the previous week. It also ended higher against other currencies except for the yen.
The ringgit was up against the Singapore dollar to 3.0148/0246 from last week’s 3.0332/0397, appreciated against the British pound to 5.6806/6961 from 5.8550/8652 previously and rose against the Euro to 4.5450/5573 from 4.6112/6196 previously. However, it fell against the Yen to 3.9668/9777 from the previous week’s 3.9277/9350. — Bernama