KUALA LUMPUR: Deputy Finance Minister I Datuk Othman Aziz today agreed with bankers' forecast that the ringgit will rebound to a fair value of 4.1 against the US dollar in the third quarter of the year.
Bankers had forecast the rebound based on improving commodity prices such as rubber and palm oil, as well as steady economic fundamentals, he said.
At 1.11pm, the ringgit stood higher at 4.4840/4890 against the greenback, after opening at 4.4870/4900 at 9am, following improved oil prices which are expected to rake in higher revenue for the government.
Brent crude futures, the international benchmark for oil prices, are still hovering above US$55 per barrel.
"This is a cycle and it is not the first time we are experiencing this, because we have seen the worst level of RM5.3 (to the US dollar) before," he told a press conference after visiting the Credit Counselling and Debt Management Agency here today.
Othman said investors will continue to remain on the sidelines until US President-elect Donald Trump's swearing-in ceremony on Jan 20.
"Some people say something worse will be coming, but we will first wait for Trump's swearing in. What you are hearing now is not a firm thing, it's just hearsay," he added. -- Bernama