NST Online Business Times : latest
NST Online Business Times : latest |
| Ringgit gains from weakest since 2010 Posted: 27 Jan 2014 07:21 PM PST Malaysia's ringgit rebounded from the weakest level in almost four years and government bonds rallied as speculation Turkey will raise interest rates helped stem a selloff in emerging-market assets. The ringgit snapped a three-day drop, strengthening along with most Asian currencies, after China's largest lender said investors in a troubled high-yield trust can recoup funds, averting the threat of a default. Bank Negara Malaysia will probably keep its policy rate on hold in 2014 to support growth even as inflation quickens, Malayan Banking Bhd analysts led by Singapore-based Saktiandi Supaat wrote in a report yesterday. "Emerging markets have taken a bit of heart and they're looking for the central bank of Turkey to perhaps raise rates," said Nick Verdi, a currency strategist at Barclays Plc in Singapore. "This is acting as a temporary circuit-breaker to the contagion we've seen in emerging markets." The ringgit strengthened 0.2 per cent to 3.3400 per dollar as of 10.07am in Kuala Lumpur, according to data compiled by Bloomberg. It touched 3.3485 yesterday, the weakest level since May 26, 2010, as foreign funds pulled money from developing nations on the prospect of further cuts in US stimulus and concern that China may be headed for a significant slowdown. The ringgit will drop to 3.35 by the end of June, according to the Maybank report.
Malaysia's central bank will maintain its benchmark rate at three per cent tomorrow, according to all 17 economists surveyed by Bloomberg. Inflation accelerated to a two-year high of 3.2 per cent in December after the government raised fuel and sugar prices last year. Fed policy makers start a two-day meeting today, at which they may lay out plans for a further reduction in bond buying after they pared the program this month by US$10 billion to US$75 billion. Global funds held 29 per cent of Malaysian sovereign debt at the end of November, official data show, making the nation relatively vulnerable to foreign outflows. That compares with 32 per cent in Indonesia and 18 percent in Thailand. The yield on Malaysia's 3.26 per cent sovereign bonds due March 2018 fell two basis points to 3.74 per cent, according to data compiled by Bloomberg. That followed a five-day streak in which the yield rose 15 basis points. The cost of insuring the nation's government debt for five years using credit-default swaps was steady at 128 yesterday, the highest level since October, CMA prices show.-- Bloomberg |
| Ringgit opens higher versus US dollar Posted: 27 Jan 2014 05:44 PM PST The ringgit was traded higher against the US dollar, in early trading today, due to mild buying interest for the local
As at 9am, the ringgit was quoted at 3.3340/3370 versus the greenback from yesterday's 3.3465/3480. A dealer said trading was expected to remain quiet today as investors were on the sidelines awaiting the outcome of the US Federal Open Market Committee meeting this week for an indication on when it will begin tapering its stimulus measures. Against other major currencies, the ringgit was traded higher. The local unit appreciated against the Singapore dollar to 2.6167/6195 from 2.6210/6226 yesterday and rose against the yen to 3.2457/2493 from 3.2636/2667 on Monday. The ringgit was traded higher against the British pound at 5.5241/5311 from 5.5291/5322 on Monday and strengthened against the euro to 4.5579/5627 from 4.5844/5871 yesterday.-- Bernama |
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