Budget, China recovery catalysts for ringgit

TheStar Mon, Sep 18, 2023 12:00am - 2 years View Original


Firdaos Rosli, Chief Economist, Bank Islam Malaysia --LOW BOON TAT/THE STAR.

PETALING JAYA: A market friendly Budget 2024 and improvement in China’s economy are expected to boost the ringgit, and it could be even more pronounced if inflation in the United States settles down.

SPI Asset Management managing director Stephen Innes expects the US dollar to weaken in the final quarter of this year (4Q), attributing this to the delayed impact of interest rate increases on the US economy.

The Federal Reserve (Fed) has raised its benchmark rate 11 times in an effort to cool inflation, putting the Fed fund rate range between 5.25% and 5.5%.

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