Bloomberg News

Ringgit Rises on Optimism Drop in Oil Prices to Support Recovery

February 28, 2012

Malaysia’s ringgit gained, headed for a third monthly advance, on speculation a decline in energy prices will support the nation’s export-led economic recovery.

Crude-oil prices fell for a second day, dropping 0.1 percent to $108.45 a barrel in New York, after hitting a nine- month high last week. The Bloomberg-JPMorgan Asia Dollar Index halted a two-day drop before the European Central Bank allots a second round of three-year loans to regional financial institutions.

“There is some relief from the fall in oil prices,” said Sim Moh Siong, a currency strategist at Bank of Singapore Ltd. “The market is expecting a further boost from the liquidity injection from the European Central Bank.”

The ringgit added 0.5 percent to 3.0100 per dollar as of 4:09 p.m. in Kuala Lumpur, according to data compiled by Bloomberg. The currency has advanced 1 percent this month.

Five-year government bonds were little changed. The yield on the 4.262 percent notes due September 2016 held at 3.22 percent, according to Bursa Malaysia. That was the highest level since Jan. 18.

To contact the reporter on this story: Y-Sing Liau in Kuala Lumpur at yliau@bloomberg.net

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


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