KUALA LUMPUR (Aug 2): Standard Chartered (StanChart) has maintained its view that the ringgit will remain as the region's outperformer, noting that it is the only Asian currency that has appreciated against the US dollar year-to-date.

In a research report titled 'Malaysia - Outperformer', the bank's research department opined that the authorities’ engagement with relevant organisations to encourage repatriation, converting and hedging their foreign currency proceeds had been the trigger for this outperformance.

Moreover, it said the underlying fundamentals had also been ringgit-positive, including low foreign positioning in Malaysia, high resident offshore positioning, monetary policy divergence with Malaysia’s central bank likely to hike rather than cut rates in the region, and continued tourism recovery.

"That said, we note that the ringgit has recovered significantly in a short period, and potential reserve rebuilding may moderate further rallies on a relative basis," the house said.

However, it said the US election outcome in November may also bring some risk to the Malaysian currency, particularly harsh tariff actions against China. 

https://www.theedgemarkets.com/node/721449