Morgan Stanley Investment said the Malaysian ringgit and Indonesian rupiah are currently the two most attractive emerging market currencies.
Because the sale that hit the two currencies caused the ringgit and rupiah depressed to the lowest level in 17 years.
There are two causes for weakening the ringgit and rupiah this year. First, the drop in commodity prices hit the export levels of Malaysia and Indonesia. Secondly, there is a plan to increase US interest rates this year.
Morgan Stanley Investment predicts that the ringgit and rupiah will be outperform compared to other emerging market currencies in other countries.
Morgan Stanley Investment also believes the two countries will no longer face Taper Tantrum in 2013 in which massive withdrawals from the $ 70 billion bond market take place. At that time, the Fed signaled it would cut its stimulus value to financial markets.
