Malaysian ringgit is an unseen gem about to be uncovered

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SINGAPORE (Oct 12): The Malaysian ringgit has been a brilliant under-the-radar story of 2017, and the gains have further to go.

Since January, when USD/MYR traded at the highest level since the Asia crisis in 1998, the pair has been in a beautiful decline.

Industrial production data today will emphasize the great growth story. Economists frequently moan that the overall economic expansion should be even faster, and that may be true, but it's still trending at a rate of around 5%, which is not to be sniffed at.

The currency depreciated by 34% against the dollar from May 2013 and October 2015 and it remains significantly undervalued -- by more than 60% to USD, according to IMF PPP metrics.

The year-to-date low at 4.1825 may be tested soon if there's broad follow through on the idea the FOMC minutes reduce the likelihood the central bank will raise rates in December.