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FXTM analyst Han Tan says the ringgit is undervalued by over 60% against the US dollar on purchasing power parity, with external factors now driving its moves. The currency has reversed most of its first-quarter gains after FTSE Russell and Norway's sovereign fund news hit Malaysian bonds.
A weaker ringgit lowers Malaysia's import costs for US dollar-priced feed, and palm oil and USD-linked commodity prices may shift with currency flows. The effect on feed commodity prices is modest.
themalaysianreserve.comDayang NorazharApr 25, 2019Not enough comparable past events yet for a historical read.
After 86 past neutral macro events, Palm Oil moved a median +0.3% over 5 sessions (56% higher; middle half -1.6% to +2.0%), and +1.0% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
