“These sort of measures tend to lead to a loss of confidence in the market, which was already jittery. United Overseas Bank Ltd. predicts the ringgit will strengthen to 4.35 per dollar by June 30 as it regains a positive correlation with crude oil. Traders remain wary even after central bank Governor Muhammad Ibrahim allowed for greater hedging flexibility in the onshore currency market in an attempt to discourage the use of NDFs. The NDF crackdown has done some harm for market players, he said. The cost of hedging for foreign investors has definitely risen at the margin.” - bLOOMBERG

Source: The Star February 07, 2017 04:41 UTC