The ringgit’s outperformance over the past year is set to be tested as the growth outlook of Malaysia’s largest trading partner further dims amid a trade war with the US.
President Donald Trump’s initial 10% levy on all Chinese goods could jeopardize 0.9% of China’s gross domestic product, according to Bloomberg Economics estimates. That’s likely to hurt prospects for Malaysia’s trade-reliant economy and add to challenges for the ringgit, which is already under pressure from foreign selling of stocks and a stronger dollar.
