New appeal for ringgit, a currency of choice for carry-trade

Outflow risk: Currency traders stand to gain if the ringgit appreciates. The downside for carry-trade is when traders start unwinding when interest rates change, causing an outflow of funds.

PETALING JAYA: The ringgit is seeing rising optimism due to the stronger-than-expected economic performance and reduced volatility of the currency.

The reduced volatility has positioned the ringgit as a favoured currency for carry-trade.