Bloomberg News

Ringgit Steady After Falling on Talk Singapore Currency May Slow

October 12, 2011

Oct. 12 (Bloomberg) -- Malaysia’s ringgit little changed after earlier falling on speculation Singapore, the nation’s second-largest export market, will slow currency appreciation at a policy review this week.

The ringgit recovered from its lowest in level in three days after Slovakia’s parliament failed to approve an enhanced European bailout fund, bolstering demand for the greenback and deterring risk-taking. The Monetary Authority of Singapore will cut the degree of tightening at a twice-yearly meeting by adjusting the exchange-rate band for the currency, according to 14 of 22 economists surveyed by Bloomberg before the Oct. 14 decision.

“The Slovakian issue and speculation over MAS’s move are some of the factors weighing on sentiment,” said Azmi Shukri Rahman, a foreign-exchange trader at CIMB Investment Bank Bhd. in Kuala Lumpur. “The Malaysian currency could weaken further in the near term.”

The ringgit held at 3.1405 per dollar as of 4:01 p.m. in Kuala Lumpur after falling to a low of 3.1625, according to data compiled by Bloomberg. The currency reached 3.1050 yesterday, the strongest since Sept. 19.

The Singapore dollar rose 0.2 percent to S$1.2813, after sliding a 0.7 percent yesterday. Malaysia shipped $57.6 billion of goods to the city-state this year through August, according to trade ministry statistics.

Government bonds rose. The yield on the 4.262 percent note due September 2016 fell two basis points, or 0.02 percentage point, to 3.33 percent, according to Bursa Malaysia.

--Editor: Barry Porter

%MYR

To contact the reporter on this story: Elffie Chew in Kuala Lumpur at echew16@bloomberg.net.

To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net.


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