HONG KONG: The ringgit, one of 2019’s Asian forex laggards, surprised many traders near the finish line with strong gains in the past week.
The currency can continue to do well in 2020.
Palm oil trades near 35-month highs, while crude oil prices are above US$60 a barrel, helping improve the terms of trade for the rare energy-exporting nation in Asia.
The government has proposed to resume infrastructure projects and implement a bigger budget deficit target for 2020.
The better outlook for this year was also supported by yesterday’s release of Malaysia’s manufacturing PMI print that climbed to 50 for December.
On the technical front, last week’s collapse in US dollar/ringgit put the pair on the brink of a death cross for the first time since March 2019.
That indicates the potential for a further breakout rally for the ringgit. — Bloomberg
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