Beware of downside risks to the ringgit

Although devaluation is currently not a trade weapon, the level of the yuan will be closely monitored; there are predictions for the yuan to go past 7.0 per dollar. The yuan

DESPITE some optimism on the direction of the ringgit, there are concerns over downside risks fuelled by, among other factors, flaring trade tensions and the weakening of the yuan.

The ringgit has strengthened following central bank moves to boost market liquidity, rising oil prices and better-than-expected first quarter gross domestic product (GDP) figures.