How will the ringgit fare against uncertainties?


In Asia, regional currencies were mostly beholden to moves in major global units though investors are watching for any developments in China-U.S. trade negotiations.

AGAINST the rebound in emerging market (EM) currencies, how far can the ringgit strengthen?

Faced with the risk of slower-than-expected growth and lingering uncertainties over trade tensions, the local currency may trade range bound with the possibility of some strengthening towards the end of the year. Slower growth may necessitate interest rate cuts and lead to capital outflows.

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