Bankers had forecast the rebound based on improving commodity prices such as rubber and palm oil, as well as steady economic fundamentals, he said.

At 4pm, the ringgit stood higher at 4.4870/4900 against the greenback, after opening at 4.4870/4900 at 9am, following improved oil prices which were expected to rake in higher revenue for the government.

Brent crude futures, the international benchmark for oil prices, is still hovering above US$55 per barrel.

“This is a cycle and it is not the first time we are experiencing this because we have seen worse levels before,” he told a press conference after visiting the Credit Counselling and Debt Management Agency here today.

Othman said investors would continue to remain on the sidelines until US President-elect Donald Trump’s swearing-in ceremony on Jan 20, 2017.

“Some people say something worse will be coming, but we will first wait for Trump’s swearing-in. What you are hearing now is not a firm thing, it’s just hearsay,” he added.

In a related development, Treasury secretary-general Mohd Irwan Serigar Abdullah said the ringgit was expected to strengthen in the second half of the year.

He reiterated that the government would not resort to capital control.

The decline in ringgit and other emerging market currencies is due to Trump’s promise to revive the US economy by bringing back more jobs to the US.

“It is a short-term phenomena,” Irwan told reporters in Putrajaya today.

However, he hoped with the various steps taken by Bank Negara Malaysia, the ringgit would be much better in coming months.

Asked whether issues related to 1MDB contributed to the ringgit’s decline, he said it was a perception created by certain quarters.