KUALA LUMPUR: CIMB Economics Research is maintaining the ringgit/US$1 estimates at RM3.05/US$1 for end-2010 and RM3.15/US$1 for end-2011.
It said on Monday, June 21 the Malaysian ringgit (RM) leads the regional currencies, gaining 5.4% year-to-date and almost hitting a two-year high of RM3.19/US$1 on April 9.
The research house said there are good reasons for the ringgit to firm against the US dollar though the pace was stronger than expected.
The reasons include firstly, intensifying Chinese renminbi revaluation talk which boosted the outlook for other Asian currencies including the ringgit.
Secondly, Bank Negara being one of the few emerging central banks that have taken early steps in the tightening process, resulting in a widening interest rate differential that has attracted capital inflows.
Thirdly, a better macro story over the medium term as investors remain hopeful that the government transformation programme, economic transformation programme and the Tenth Malaysia Plan will be able to make Malaysia's market more competitive, led by the private sector.
It said on Monday, June 21 the Malaysian ringgit (RM) leads the regional currencies, gaining 5.4% year-to-date and almost hitting a two-year high of RM3.19/US$1 on April 9.
The research house said there are good reasons for the ringgit to firm against the US dollar though the pace was stronger than expected.
The reasons include firstly, intensifying Chinese renminbi revaluation talk which boosted the outlook for other Asian currencies including the ringgit.
Secondly, Bank Negara being one of the few emerging central banks that have taken early steps in the tightening process, resulting in a widening interest rate differential that has attracted capital inflows.
Thirdly, a better macro story over the medium term as investors remain hopeful that the government transformation programme, economic transformation programme and the Tenth Malaysia Plan will be able to make Malaysia's market more competitive, led by the private sector.
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