KUALA LUMPUR: The ringgit, which is at its two-month high at the 3.5 level against the US dollar today, will likely stay at the current level for the medium term, said a trader. CIMB Regional Head of FX and FXO Trading, Selvaraj Sinnan, said foreign holdings of Malaysian Government Securities remain stable at between 40 and 45 per cent despite the lower ringgit, signalling foreign investors' confidence. "Going forward, with Bank Negara Malaysia's assurance that interest rates will remain accommodating, Malaysia will remain attractive to foreign investors," he told reporters on the sidelines of the Invest Malaysia 2015 conference here today. The two-day event, which ended today, was jointly organised by Bursa Malaysia and CIMB Group. Selvaraj said traders have also started to shift their focus away from the 1Malaysia Development Bhd debt issue, which had weighed on the local note over the last five months, as it had been well-factored into the market. "If you ask me, this non-economic factor is not a factor anymore," he added. Meanwhile, CIMB Chief Economist Dr Arup Raha said the delay in the US interest rate hike would drive the ringgit upwards as the greenback's rally pauses. He said he expects Federal Reserve Chair Janet Yellen to increase the country's borrowing cost only in December, with the change expected to be "a very shallow glide path". "If she is late to raise the rates, her problem will be inflation but she has the instruments to deal with that. "On the other hand, if she increases the rates early, the economy will capitulate and she will be left with no instruments and she cannot go back to quantitative easing," he added.