Oct. 10 (Bloomberg) -- Malaysia’s ringgit rose for a fifth day, the longest winning streak in eight weeks, on speculation global funds will pump more funds into the nation’s assets as the economy sustains its recovery.
The currency climbed to the strongest level in more than a week after an Oct. 7 report showed exports rose in August at the fastest pace in four months and Prime Minister Najib Razak said economic growth may quicken in 2012. The ringgit tumbled 7 percent in September, its worst performance since 1998, as Europe’s debt crisis spurred demand for dollars. German Chancellor Angela Merkel said yesterday European leaders would ensure banks have adequate capital.
Investment inflows “will be good as economic growth is projected to be better,” said Akira Banno, a treasury adviser at Bank of Tokyo-Mitsubishi UFJ in Kuala Lumpur. “The Malaysian currency will continue to trade in a range with developments in Europe dictating the trend.”
The ringgit appreciated 1.2 percent to close at 3.1230 per dollar as of 5:46 p.m. in Kuala Lumpur, according to data compiled by Bloomberg. That’s the highest since Sept. 21.
Gross domestic product is expected to increase as much as 6 percent next year after climbing a maximum 5.5 percent in 2011, Razak said in his annual budget speech on Oct. 7. The deficit is forecast to narrow to 4.7 percent of GDP from 5.4 percent. Government data due tomorrow will show industrial output rose 0.4 percent from a year earlier in August after declining 0.6 percent in July, based on the median forecast in a Bloomberg survey of 16 economists.
Malaysia’s benchmark three-year bonds fell. The yield on the 3.434 percent note due August 2014 rose four basis points, or 0.04 percentage point, to 3.14 percent, according to Bursa Malaysia.
--Editors: James Regan, Barry Porter
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