The IMF said emerging economies could face the double threat of rising protectionism as it could reduce demand for their exports, and that U.S. inflation and faster interest rate hikes could spark capital outflows, making it harder for them to service external debt.
Stephen Innes, a senior trader at OANDA, said in a note investors are likely to feed off a supportive environment for risk assets, which markets expect to continue following the second round of French elections on May 7.
However, he added traders will need to continue to grapple with the possibility of Trump headlines, which could disrupt confidence.
Chee Sing Lim of RHB Research said the ringgit is catching up with Monday’s relief rally following the French poll.
The currency was also helped by a rise in central bank reserves in mid-April.
Meanwhile, a conditional settlement deal between Malaysia’s state fund 1Malaysia Development Bhd and Abu Dhabi state fund IPIC has also boosted sentiment
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