Dollar to weigh on emerging markets

“As its (government’s) spending would affect the earnings of companies, and without the cash flow companies cannot attract inflows and attain the expectations of their investors in the long run,” he said.

As for the ringgit, it was under pressure for the most part of last week. It ended the week lower following the strengthening of the US dollar due to heightening trade tensions.

Malaysian Industrial Development Finance Bhd chief economist Dr Kamaruddin Mohd Nor said the US dollar has hit a 10-year high, which would cause other currencies to depreciate further against the greenback.

“The strengthening of the US dollar has weighed down on merging market currencies, including the ringgit. The ringgit was mainly affected by external factors, coupled with moderating oil prices,” he said.

As of the new appointments that took place within this week, the Malaysian Palm Oil Board has appointed Tan Sri Mohd Bakke Salleh as its new chairman for a two-year term, replacing Datuk Seri Ahmad Hamzah.

However, his appointment has received criticism as he was the former chairman of the troubled strategic investment company 1Malaysia Development Bhd.

Despite the backlash, the appointment was supported by Primary Industries Minister Teresa Kok who contended that Bakke is a man of integrity who could take the palm oil industry to greater heights.