The foreign exchange rate is an important price variable not just in the sense that it influences a wide range of economic activities such as exports and imports, but because it is often taken as reflecting the comparative strength of a country’s economic fundamentals against others.
Micro, small and medium enterprises (MSMEs) are anticipating improved business and economic prospects in the second half of 2024 (2H24) compared with 1H24 amid concerns about reduced consumer purchasing power, persistent cost pressures and the weak ringgit.
The prospect of a stronger gross domestic product (GDP) growth, together with a firmer ringgit and more foreign investments coming into Malaysia, will likely push the FBM KLCI to the 1,700 level next year.
The Bank of Japan (BoJ) has stepped up its drum beat of hawkish comments over the past week, in a series of communications that insiders say is priming markets for an end to negative interest rates, which could happen in the first few months of next year.
US manufacturing activity has shown little or no growth in the last year as businesses struggle with lacklustre consumer spending on merchandise and excess stocks built up after the pandemic supply chain disruptions.