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6 May 2013
Forex Flash: After Malaysian election, further Ringgit gains to be limited - ANZ
FXstreet.com (Barcelona) - Malaysian general elections held yesterday, one of the tightest in the country’s history, is finally out of the way, with the incumbent Barisan Nasional (BN) coalition securing enough seats to govern for another five years.
In view of Khoon Goh, Senior FX Strategist at ANZ: "With the election uncertainty now out of the way, focus will return to fundamentals. We expect BNM to hike rates by 25bps in Q4 this year on the back of a strong pick-up in domestic demand. Ringgit has rallied to trade below 3.00 vs the USD, but further gains to be limited. We retain our year end forecast of 3.02 for USD/MYR."
In view of Khoon Goh, Senior FX Strategist at ANZ: "With the election uncertainty now out of the way, focus will return to fundamentals. We expect BNM to hike rates by 25bps in Q4 this year on the back of a strong pick-up in domestic demand. Ringgit has rallied to trade below 3.00 vs the USD, but further gains to be limited. We retain our year end forecast of 3.02 for USD/MYR."