MUFG: Political risks cloud Ringgit outlook despite firm fundamentals
MUFG's Lloyd Chan says Malaysia's solid growth and low inflation support the Ringgit, but rising domestic political tensions could push USD/MYR higher.
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Malaysia's strong economic backdrop – robust growth, contained inflation, and prudent policy settings – continues to underpin the Ringgit, according to Lloyd Chan of MUFG.
However, escalating domestic political risks are emerging as a headwind. Chan cautioned that these tensions could drive the USD/MYR pair in the near term, suggesting potential depreciation pressure on the local currency.
The note highlights the tug-of-war between favorable fundamentals and an uncertain political climate.
Source: FXStreet Forex News