Don't be too happy yet about ringgit's upturn, warns economist

The value of the ringgit is improving but its upturn is unlikely to continue unchecked, said senior research fellow at the Malaysian Institute of Economic Research Shankaran Nambiar.

Shankaran noted firstly that the ringgit's upturn was not surprising. 

He explained that the ringgit had taken a massive beating in the past two years, and being as low as it was - the worst performer in Asean - it had been an inviting currency for forex traders to pick up.

"The oil price hike, encouraging export numbers and the sustained budget deficit all added to its appeal," the economist told Malaysiakini.

However, the upward movement of the ringgit will not be without restraint, Shankaran cautioned...