Zeti says ringgit is 'significantly undervalued' amid growth

Dubai

THE Malaysian ringgit remains "significantly undervalued" and risks to economic expansion are unlikely to materialise with exports still strong, central bank governor Zeti Akhtar Aziz said.

The ringgit doesn't reflect fundamentals with the nation's current account in surplus, unemployment at about 3 per cent and inflation within Malaysia's long-term average, Ms Zeti said in an interview in Kuwait City on Wednesday. The currency may recover when the US Federal Reserve normalises interest rates and as "domestic issues" in Malaysia are resolved, she said.