Pressure builds up for the ringgit – again

On the rebound: The ringgit snaps its four-day losing streak and gains against the US dollar, closing at 4.0043. – Reuters

IT is deja vu for the ringgit, as investors’ sentiment towards emerging markets turns sour.

According to analysts, foreign capital outflows will likely accelerate in the weeks ahead, and this will certainly pile pressure on the Malaysian currency, which has already weakened past the critical RM4-per-US-dollar level for the first time in more than a month over the week.