Besides, exchange rate directions are driven by monetary policy guidance and forward-looking macro outlook. > Exchange rates should be fairly valuedBefore prematurely jumping into interpreting the implied ringgit exchange rate valuation, it is important to understand the concept first. An undervalued currency would be beneficial to exporters but not so for importers and domestic consumers of imported goods. The exchange rate level, if not at market equilibrium, is akin to transferring economic surplus from one party to another. At a business as usual pace, Malaysia could only expect marginal improvement in its global economic position.

Source: The Star February 24, 2017 23:48 UTC