Oct. 17 (Bloomberg) -- Malaysia’s ringgit advanced for a second day on optimism European leaders will resolve their differences and solve the region’s debt crisis, spurring demand for emerging-market assets.
The currency touched the highest level in almost a month as Malaysia’s benchmark stock index rose 1.5 percent. Group of 20 finance ministers and central banks concluded weekend talks in Paris, setting an Oct. 23 summit of European leaders in Brussels as the deadline for an agreement to avoid a Greek default, bolster banks and curb contagion.
“There’s a bit of risk-on,” said Saktiandi Supaat, head of foreign-exchange research at Malayan Banking Bhd. in Singapore. “There’s pretty firm commitment from the European Union leaders about the policy that they might come out with towards the end of the month.”
The ringgit strengthened 0.9 percent to 3.1020 per dollar as of 4:35 p.m. in Kuala Lumpur, according to data compiled by Bloomberg. The currency touched 3.0980 earlier, the highest level since Sept. 19. The ringgit may trade between 3.08 and 3.12 this week, Supaat predicted.
Official data released today showing Singaporean exports fell 4.5 percent in September from a year earlier, compared with the median estimate in a Bloomberg News survey for a 3.5 percent rise, may limit gains in the ringgit. Singapore is Malaysia’s second-biggest overseas market.
Government bonds declined. The yield on the 4.262 percent notes due September 2016 rose seven basis points, or 0.07 percentage point, to 3.39 percent, according to Bursa Malaysia.
--Editors: Andrew Janes, Simon Harvey
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