Malaysia asset manager PNB remains optimistic on the ringgit
SINGAPORE: Malaysia's largest asset manager, Permodalan Nasional Bhd (PNB), remains optimistic about the ringgit despite uncertainty over whether the recent strengthening of Asian currencies against the US dollar is a transient or a more fundamental trend.
In a statement to Reuters, PNB said its optimism is based on the "solid fundamentals" of Malaysia's economy, underpinned by increasing investment activity and policy reforms aimed at improving fiscal sustainability.
Nonetheless, PNB said the US dollar remains the world's reserve and trading currency.
This year's economic uncertainty and market volatility driven by a shift in US trade policy have buffeted exchange rates.
"We remain vigilant of the currency trends but are confident that we are able to navigate the fluctuations through our risk management and hedging framework," PNB said.
It added that its portfolio is diversified but skewed towards domestic investments, with global assets, mainly in US dollars, representing only 24 per cent of the total.
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