SINGAPORE (Feb 12): The ringgit is expected to weaken in the second quarter amid a rising likelihood of the US raising interest rates on anticipation of a higher inflation rate in the US between April and August, says Deutsche Bank for Asia-Pacific chief economist Michael Spencer.

Spencer says the ringgit would go through a “shake up” in the second quarter of 2018. “We would probably see [the] ringgit end the year a little bit weaker, to touch higher than [the] 4.000-level against the US dollar from what it is today. But it is just a couple of percentages and it is not significant,” he says.

Spencer says the ringgit has been supported by the strengthening of the yuan against the US dollar.

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