Ringgit to trend lower as risks mount, says research house

PETALING JAYA: MIDF Research says the outlook for the ringgit will be negative going forward as risks surrounding the currency exacerbate.

“In addition, the possible downgrade of the Malaysian bond market by FTSE Russell will continue to haunt the ringgit until September 2019, the deadline given,” it said. While a trade deal between the US and China is expected to provide relief to the rest of the world, fears continue as the delicate trade talks could collapse. US President Donald Trump’s latest threat to raise tariffs on US$200 billion worth of Chinese goods to 25% from 10% effective this Friday has escalated trade tensions.

Bank Negara Malaysia’s overnight policy rate , cut by 25 basis points yesterday, may cause further decline in the ringgit as lower interest rates are deemed unattractive to foreign investments, reducing the demand for and relative value of the currency.

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MIDF predicts ECRL will grow economy by 2.7pctResearch firm expects the project to create jobs, open up new areas, and increase FDI. How? We not stupid u take loan to build this white Elephant, u pay interest and principles than only than if any talk about profit, MIDFGroup you gonna subsidize our tickets to obtain your 2.7pct growth ? ECRL madness Icing to cake to mask missing ECRL facts? Gemas-JB $46m/km vs ECRL $69m/km . That is $23m/km extra for 650km is RM15bil Why need 44bil HIGHSPEED CARGO train into jungle? What is 650km land acquisition cost? 2.7% growth ? When MIDFGroup don't even know real ECRL cost
Source: malaysiakini - 🏆 20. / 51 Read more »