Ringgit remains vulnerable to US rates

Kenanga Research expects the domestic debt market to regain momentum amid a potential return of risk appetite.

PETALING JAYA: High US treasury yields amid heightened geopolitical concerns will likely keep investors in low risk mode and in safe havens like the US dollar assets at the expense of emerging markets currencies and assets in the short term, says analysts.

They think the Middle East conflict, volatile energy prices and uncertainty over the Federal Reserve (Fed) policy given the mixed data and sustained inflationary pressure, keeps another 25 basis point (bps) hike option on the table in December for the Fed.