The ringgit is likely to hover between RM4.20 and RM4.30 to the US dollar until year-end amidst a lack of market movers, says Affin Hwang Asset Management Bhd.

Managing director Teng Chee Wai said based on the current economic scenario, the ringgit though, should be at between RM3.80 and RM3.90 against the greenback.

“If the ringgit doesn’t drop further, it would be considered very good. Don’t even talk about recovery for the time being. There are other challenges that the ringgit faces, both at home and globally.

“(But) I personally think the ringgit’s value at RM4.20 to RM4.30 is undervalued and seems a little bit oversold,” he said after a media briefing on ‘Fourth Quarter 2015 Market Outlook’ today.

He expects oil prices to remain range bound, trading between US$45 and US$55 per barrel in the near term, as production continues to be strong from oil producing countries.

On the domestic market outlook, he said it will remain well supported on the back of the current account surplus condition, coupled with Malaysia being a manufacturing and export-oriented economy.

He cited the tilt away from being oil dependent would likely provide the country with a competitive edge against those with a higher reliance on oil exports.

- Bernama