, Malaysia

Political risks, trade tensions continue to pressure ringgit

Average forecast for 2019 remains at MYR4.15/USD.

Political risks and the US-China trade tensions continue to weigh down on the ringgit, which has mostly traded sideways in the weaker half of the short-term trading band, according to an S&P Global Ratings report.

The ringgit traded mostly between MYR4.05/UDS and MYR4.20/USD, with a YTD average to MYR4.14/USD. Average forecast for 2019 remains at MYR4.15/USD.

Domestic political risks such as ethnic tensions, internal strife with Anwar Ibrahim’s Parti Keadilan Rakyat, as well as persistent uncertainty over the promised handover from Prime Minister Mahathir Mohamad before his term ends in 2023 continue to weigh down on the ringgit. S&P noted that even if those risks fail to materialise, it is likely to have a negative impact on investor sentiment.

S&P also maintains its 2020 average forecast of MYR4.25/USD despite the likelihood that a “Phase One” trade deal would offer to emerging market currencies in general.

Photo courtesy of Pexels.com.
 

Follow the link for more news on

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

How investor stewardship puts companies in a win-win state
Stewardship Asia Centre CEO says a company’s failure to take care of society is a failure to take care of its stakeholders.
Creating harmony in a heterogonous workforce 
An HR expert said tests like DISC can help identify which employees can work best together.