BNM governor says local currency has outperformed most regional currencies since the end of September 2015.
KUALA LUMPUR: The ringgit has exceeded the adjustment phase but Bank Negara Governor Zeti Akhtar Aziz warned that there was still continued volatility in the local unit against the US dollar.
“Ringgit volatility since September 2014 has exceeded levels in previous episodes of sharp adjustments,” she said.
The local currency has outperformed most regional currencies since the end of September 2015, she told a press conference in conjunction with the release of BNM’s 2015 annual report here today.
When asked if the ringgit would strengthen to the RM3.80 level this year, she said the central bank was not projecting any level for the exchange rate.
“But, what we are projecting is for volatility,” said the 69-year-old governor, who is retiring as the head of Bank Negara in April.
The ringgit strengthened to close higher against the US dollar today at 3.9910/9960 against 4.0050/0100 on Tuesday but not before touching a high of 3.9597 earlier in the day.
Improved investor confidence, sparked by a recovery in crude oil prices to above US$40 per barrel, helped the local currency appreciate below the 4.0 level.
A dealer said the local currency had bucked the performance of its regional peers, rallying at its monthly best since 1998.