[ad_1]
He said the recent weakness of the ringgit was due to the strength of the dollar as investor appetite for the dollar continued to rise with higher US interest rate expectations and the war world trade. the ringgit has dropped almost all of its gains against the dollar this year, "he said at a press briefing today.
Ahmad pointed out that if the US dollar had not "The next direction of the ringgit is based on how Beijing could act, or retaliate, at tariffs," he said.
Ahmad di I do not think that the People's Bank of China (PBOC) or the Chinese central bank will devalue the yuan, as this would risk losing investor confidence in China, as it did in 2015.
"So that the yuan has accelerated in recent weeks, this was most likely due to the measures of the PBOC. The rally of the US dollar has been at the origin of the weakness of the yuan, "he said.
Ahmad reiterated that it would be positive for emerging currencies if China did not react but allowed fluctuations in external market forces the ringgit was the second best performing Asian currency this year with only the yen performing better than the ringgit, "said Ahmad.
He also pointed out that the ringgit was able to progress against the Singapore dollar this year. war concerns prevented further gains.
"However, a drop in interest rates could weigh on sentiment for the ringgit, to the point where the currency weakens further," he said.
Ahmad pointed out that if there are tough conditions in the foreign market, "The BNM should maintain its interest rate policy unchanged at the upcoming monetary policy meeting (MPC) because the Economy is doing well and inflation is low. ", He said.
The only reason to cut rates, said Ahmad, is that the tensions of the trade war World War Intensify – Bernama
Source link
