Malaysia’s ringgit fell for the first time in three days before a report due this week that economists predict will show consumer prices rose for the first time since August 2011.
Inflation accelerated to 1.4 percent in December from 1.3 percent in November, according to the median forecast in a Bloomberg survey before official data due on Jan. 23. The Southeast Asian nation’s central bank will keep policy rate on hold at 3 percent on Jan. 31, this year’s first meeting, a separate poll shows.
“Expectation of a potential turnaround in inflation could have a slight negative impact given that policy rates are likely to be on hold,” said Wee-Khoon Chong, a fixed-income strategist at Societe Generale SA in Hong Kong. “The Malaysian currency should trade within a tight range today in the absence of major market-moving news.”
The ringgit was at 3.0140 per dollar as of 9:29 a.m. in Kuala Lumpur, compared with Jan. 18’s close of 3.0130, according to data compiled by Bloomberg. The currency touched 3.0115, near the 3.0068 level reached last week, which was the strongest since March 8. One-month implied volatility, a measure of exchange-rate swings used to price options, advanced 12 basis points, or 0.12 percentage point, to 5.18 percent.
Government bonds were little changed. The yield on the 3.418 percent notes due August 2022 held at 3.47 percent, according to Bursa Malaysia.
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