Foreign investors may be punting on an imminent revaluation of the US dollar-linked Malaysian ringgit, but views are mixed about the currency's fair value. Moh Siong Sim, an economist with Citigroup Smith Barney, said that investors who thought that the ringgit was 'grossly undervalued' by perhaps as much as 25 per cent were wide of the mark. 'Our view remains that the ringgit is probably close to fairly valued or at best slightly undervalued,' Mr Sim said in a research report. But Mr Sim's view seems at odds with the fact that the Malaysian government also thought the ringgit was fairly valued when they pegged it at M$3.80 against the US dollar in September 1998. Since then, both the US dollar and the ringgit have dropped in value against other key currencies. Sanchita Basu Das, an economist with Singapore's United Overseas Bank, said it was 'actually quite difficult' to determine the fair value of the ringgit. 'The consensus is that the currency is about 5 per cent to 7 per cent weaker than it was in September 1998, when the authorities assumed that the ringgit was fairly valued,' Ms Das said. She said the market expected a free-floating ringgit probably would trade at M$3.61 to M$3.68 to the greenback, although the central bank was likely to aggressively moderate the extent of ringgit gains. But other analysts are tipping a larger movement if and when Kuala Lumpur gets rid of the peg. 'We expect a modest 5 per cent to 10 per cent appreciation of the Malaysian ringgit, to about M$3.40 to M$3.60, from the peg of M$3.80 against the US dollar,' said Wong Chee Seng, an analyst at DBS Bank. Citigroup is more cautious, having nudged its 12-month view of the ringgit to M$3.72 to reflect the probability of a move by Malaysia following an expected revaluation of China's exchange-rate regime.