Positive outlook for the ringgit

TA Research thinks that a positive outlook may emerge for the ringgit, as the election outcome last weekend was within expectations.

PETALING JAYA: With Perikatan Nasional (PN) making significant inroads in the recent state elections, Malaysia finds itself in a tough spot as policymaking turns more challenging while political risks add pressure on the ringgit and the stock market.

External headwinds in the form of deflation, deleveraging and defaults in China and dollarisation in Argentina have shaken investor sentiment and brought volatility back into markets, including a fresh bout of weakness for the ringgit.