Ring­git gains mo­men­tum on in­vestor con­fi­dence

New Straits Times - - Business -

KUALA LUMPUR: The ring­git has re­gained mo­men­tum in re­cent months fol­low­ing higher in­vestor con­fi­dence amid strong eco­nomic num­bers and tem­pered op­ti­mism over the United States Pres­i­dent Don­ald Trump’s cam­paign agenda.

FXTM vice-pres­i­dent of cor­po­rate de­vel­op­ment and mar­ket re­search, Jameel Ah­mad, said the ring­git was now at its strong­est level against the green­back since Oc­to­ber last year.

“There is a com­bi­na­tion of dif­fer­ent fac­tors that ex­plain why the ring­git has gained of late.

“It was mainly driven by a de­crease in op­ti­mism over Trump’s abil­ity to push his cam­paign agenda for­ward with­out fac­ing heavy leg­isla­tive ob­sta­cles,” he said in a state­ment.

Jameel said on the do­mes­tic front, the re­cent first-quar­ter gross do­mes­tic prod­uct (GDP) growth of 5.6 per cent lifted in­vestor con­fi­dence sig­nif­i­cantly, and had proven that the econ­omy could main­tain re­silience in spite of cur­rency tur­bu­lence.

“The GDP per­for­mance will con­tinue to sup­port in­vestor sen­ti­ment, but central bank sta­bil­ity in terms of mone­tary pol­icy will also sup­port the ring­git,” he added.

Jameel said in­vestors would be slowly lured back to in­ter­na­tional bond mar­kets as the dol­lar had prob­a­bly “topped” for some time, which should also sup­port buy­ing sen­ti­ment to­wards the ring­git as most emerg­ing mar­ket cur­ren­cies still ap­pear un­der­val­ued. Za­rina Zakariah

HAMZAH PIC BY ASYRAF

FXTM vice-pres­i­dent of cor­po­rate de­vel­op­ment and mar­ket re­search, Jameel Ah­mad, says ring­git is now at its strong­est level against the green­back since Oc­to­ber last year.

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