# FXTM: Ringgit undervalued as traders oversell on headline risks

> 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.

- Date: 2019-04-25 · published 2019-04-25T12:00:00.000Z
- Category: macro · region Malaysia · magnitude low
- Page: https://feedsoft.ai/events/59836-fxtm-ringgit-undervalued-as-traders-oversell-on-headline-risks
- Commodities: [Malaysian Ringgit (MYR per USD)](https://feedsoft.ai/c/USDMYR.md), [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

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.

## Read by commodity

- USDMYR: bullish ▲
- PALMOIL: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2020-09-29 | [Ringgit rebounds as risk-on mood, oil prices improve](https://feedsoft.ai/events/51354-ringgit-rebounds-as-risk-on-mood-oil-prices-improve.md) | -5.6% | +1.6% |
| PALMOIL | 2019-06-10 | [Ringgit buoyed by external trade and anticipation of Fed rate cut](https://feedsoft.ai/events/58861-ringgit-buoyed-by-external-trade-and-anticipation-of-fed-rate-cut.md) | -1.1% | -3.6% |
| PALMOIL | 2018-10-12 | [Ringgit softness persists on risk aversion action on global uncertainties](https://feedsoft.ai/events/62790-ringgit-softness-persists-on-risk-aversion-action-on-global-uncertainties.md) | +1.8% | -4.2% |
| PALMOIL | 2017-09-27 | [Standard Chartered places ‘overweight’ forex weightings on ringgit \| Borneo Post Online](https://feedsoft.ai/events/69218-standard-chartered-places-overweight-forex-weightings-on-ringgit-borneo-post.md) | -4.3% | -2.0% |
| PALMOIL | 2020-10-28 | [EMERGING MARKETS-Malaysian shares slip on political woes as trade data supports ringgit](https://feedsoft.ai/events/50890-emerging-markets-malaysian-shares-slip-on-political-woes-as-trade-data-supports.md) | +3.6% | +12.6% |

## Sources

- themalaysianreserve.com: https://themalaysianreserve.com/2019/04/25/fxtm-ringgit-undervalued-as-traders-oversell-on-headline-risks/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.