Fund flows show the bigger picture

“The large interest rate differentials between the United States and Malaysia is largely responsible for the persistent weakening of the ringgit against the US dollar," Socio Economic Research Centre's Lee said. — Bloomberg

WHILE the weakened ringgit is the focus of the week, there appears to be strong undercurrent movements in the state of fund flows in Malaysia.

Data show the country’s bond and equity markets have seen contrasting flow movements of late, whereby the bond market is seeing foreign selling of Malaysian debt papers while the equity market is witnessing patchy foreign capital flows.