Posted on 29 Jun 2015
"I think it (ringgit) will rebound. What is happening now is lack of confidence in the global foreign exchange market. It's not the ringgit alone but other currencies are also affected.
"From a fundamental point of view, the ringgit should be very strong," he told reporters after breaking fast with 100 orphans from six welfare homes in the Klang Valley on Friday.
He said the uncertainties surrounding Europe and China coupled with the slow recovery of the US dollar had not only impacted world currencies but also the ringgit.
On Friday, the ringgit fell to 3.7660/7690 against the US dollar from 3.7430/7460 the previous Friday and was mixed against other major currencies.
On a possible further downgrade by Fitch Ratings, which could hurt the local currency, Farid said: "Expectation of a possible downgrade by Fitch Ratings has actually been 'priced-in' in our exchange rate".
"The volatility in today's exchange rate very much depends on global developments such as Greece's possible exit from the European Union," he added.
A recent news report said that the local currency dropped the most in Asia on speculation that Fitch Ratings would downgrade the country as the US moved towards raising interest rates.
Its Head of Asia Pacific Sovereign Ratings in Hong Kong Andrew Colquhoun was quoted as saying in the report that the rating agency would review its assessment before the end of June.
