In a note to clients, the research house pointed out that it appears that the US$ is on the hit due to (1) concerns the Russian investigation may slowdown tax reform & other growth policies; (2) the potential story of Euro tapering; and (3) slower interest rate hike cycle by the Fed.
“These noises somewhat support our view that the intraday trade for ringgit against the US$ could reach around 4.12-4.15 from our fundamental analysis during our computation.
“This allowed us to deduce that ringgit would average around 4.31-33 against the US$ for the full year of 2017,” it said.
Reuters reported the US dollar headed for weekly losses on Friday, wallowing at its lowest levels against the euro in nearly two years after European Central Bank chief Mario Draghi said policymakers would discuss changing its bond-buying programme in the autumn.
The dollar index, which tracks the greenback against a basket of six major rivals, was flat on the day at 94.316, not far from its overnight low of 94.090, its deepest nadir since August 2016. It was down 0.8 percent for the week.
According to the wire report, the euro caught its breath at $1.1625 after climbing as high as $1.1659 on Thursday, its loftiest peak since August 2015.
Draghi said that no exact date had been set for discussing any changes to the ECB’s ultra-easy monetary programme but did specify the season.
Reuters reported his comments were perceived as “hawkish, even though the ECB didn’t tip its hand as to when it will begin balance sheet normalisation and in fact left the door open to additional easing if needed,” said Bill Northey, chief investment officer at U.S. Bank Private Client Group in Helena, Montana.
The dollar was nearly flat on the day against the yen at 111.92, after touching an overnight low of 111.48, its lowest since June 27. It was on track to shed 0.5 percent for the week.