Ringgit strengthening and US$ weakening

Room for the dollar to continue underperforming in 2018 remains on the table driven by a more positive global growth outlook in 2018, continued export momentum growth in the Asia ex-Japan region alongside the start of policy normalisation in some countries.

THE US dollar relatively underperform in 2017 despite a 75bps hike by the Fed. It lost ground against most major currencies and a handful of emerging market currencies due to stronger global growth that led to a convergence in growth.

Room for the dollar to continue underperforming in 2018 remains on the table driven by a more positive global growth outlook in 2018, continued export momentum growth in the Asia ex-Japan region alongside the start of policy normalisation in some countries.