KUALA LUMPUR, Feb. 7 (Xinhua) -- Malaysian Ringgit (MYR) remains 7 percent to 8 percent undervalued against the U.S. dollar (USD), according to an analysis released on Thursday.
Maybank Investment Bank Research said in a report that from a valuation perspective, the Ringgit remains 7 percent to 8 percent undervalued against the U.S. dollar, relative to its fair value estimate of 3.80.
The Ringgit stood at 4.0995 against the U.S. dollar on Thursday morning, according to Malaysia's Central Ban
The USD/MYR ratio has been on a gradual yet bumpy decline of more than 2.5 percent since hitting a high of 4.20 on Nov. 28, a slightly more favorable external environment could potentially support the case for further gains ahead, the report said.
Pause in Federal Reserve rate hike, moderate global growth and benign global inflation, could support higher-yielder currency including Ringgit, according to the research house.
Improved oil and palm oil prices could further lend support to the Ringgit, it added.
