Saturday 11 July 2015

Ringgit seen undervalued based on economic fundamentals

Capital market participants surely have a lot to watch out for. One eye will be on the developments in the global economy from Greece’s debt problems to China’s stock markets and its economy.

The other will be scrutinising the ringgit that had dipped below the psychological RM3.80-to-the-dollar level this week and is now hovering just slightly above that historical mark.

The events in China are a cause of concern for many investors as it is Malaysia’s largest trading partner. Most of Malaysia’s exports directly or via Singapore head towards the world’s most populous country and economic and capital market gyrations in China will have an impact on Malaysia.

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