Can the ringgit reach 4.1500 against the US dollar soon?

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The Ringgit May Reach 4.1500 Against the US Dollar Soon

The Malaysian ringgit could potentially reach the 4.1500 level against the US dollar in the coming days if current conditions persist. In the morning session of May 12, the local currency weakened to 4.1240/1280 against the greenback, down from the previous day's close of 4.1160/1210. This movement is influenced by a combination of factors, including rising Covid-19 infections and a mixed economic recovery.
Impact of Rising Covid-19 Cases

An analyst indicated that the ongoing increase in Covid-19 infections within Malaysia is a significant factor weighing on the domestic currency. If this trend continues without substantial improvement, the US dollar/ringgit exchange rate is projected to approach 4.1500 in the immediate future. This sentiment highlights the direct correlation between public health conditions and the strength of the national currency.
Lopsided Economic Recovery and External Factors

The ringgit's performance is also described as being caught in a "lopsided recovery." While strong global economic momentum is benefiting Malaysian exports, domestic services sectors are lagging due to movement control orders. This creates a conflicting dynamic where external economic velocity boosts the currency, but internal restrictions dampen its overall strength.
Support from Commodity Prices

Despite the headwinds, higher oil and commodity prices are providing a degree of support to the ringgit. These favourable commodity prices act as a buffer, offering some resilience to the local unit amidst broader economic pressures. This suggests that Malaysia's position as a commodity exporter offers a partial counterbalance to the challenges faced by other sectors of its economy.
Performance Against Other Currencies

At the opening of trading on May 12, the ringgit showed mixed performance against other major currencies. It saw an increase against the British pound, moving to 5.8252/8312, and also rose against the euro, trading at 5.0049/0110. However, it depreciated against the Japanese yen, falling to 3.7911/7955, and also weakened against the Singapore dollar, trading at 3.1073/1105.

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Can the ringgit reach 4.1500 against the US dollar soon?

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