As the 2019 novel coronavirus continues to grip global fears, the ringgit is expected to test the psychological level of 4.10 next week, with a downtrend momentum in the offing.
"With the risk aversion erasing the ringgit’s year-to-date gain against the greenback, investors would need clear signs that the coronavirus outbreak is stabilising before risk assets can stage a meaningful rebound," he toldThe ringgit value depreciated 1.93 percent in the last three months due to various global concerns, including the US-China trade tension, US-Tehran geopolitical tension, and of late, the coronavirus outbreak.
On Friday morning, the World Health Organisation declared the virus as a global health emergency, triggering economic concerns globally, with markets witnessing global stocks taking a cue from it. "However, the ringgit weakness could be mitigated if we see positive surprises in the domestic economic prints due over the coming week, including December’s industrial production and external trade data.