KUALA LUMPUR: US real-money funds are generally constructive on the ringgit although there are concerns about Malaysia’s fiscal outlook following last month’s unexpected election result, according to Goldman Sachs.
Key issues include how the govt will fund its election pledges and whether lower infrastructure spending will be enough to reduce imports and improve the current account, analysts Danny
Suwanapruti and Andrew Tilton wrote in a note Wednesday after meeting institutional investors in the US.
“Despite the risk of a slowdown in economic growth, investors said this could be positive for the ringgit if the current-account position improved,” they said in the note.
Real money and hedge funds remain bullish on Thailand’s baht due to the current-account surplus, low inflation and high level of forex reserves
.
But some are concerned that Thailand’s political situation may lead to instability in coming months
.
Investors remain bearish on the Philippine peso due mainly to the deterioration of the current-account balance. - Bloomberg
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