KL CHRONICLE: Sentiment toward Malaysia’s ringgit is finally turning around

Thursday, January 28, 2016

Sentiment toward Malaysia’s ringgit is finally turning around

The currency rose more than any other in emerging markets as Prime Minister Najib Razak was cleared in a corruption probe and oil traded 15% off its lowest in more than decade. 

The ringgit extended an advance beyond its 100-day moving average, a bullish signal for a currency that’s appreciated this month, whilst most Asian counterparts weakened.

 With Najib now able to give his full attention to an economy hit by a slump in commodities, focus will be on Thursday’s budget revisions for a clearer picture on the economic outlook.

“With the political risk out of the way, sentiment has improved,” said Nizam Idris, head of foreign-exchange and fixed- income strategy at Macquarie Bank Ltd in Singapore.

The ringgit strengthened for a fourth day in the longest stretch of gains since September. It rose 0.9% to 4.2565 a dollar in Kuala Lumpur and reached a seven-week high of 4.2347, according to prices from local banks compiled by Bloomberg.

 The currency has appreciated 0.9% versus the dollar in January, compared with a 2.7% loss in the Indian rupee and the South Korean won’s 2.5% decline.


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