News & Articles Malaysian Ringgit declines most in two weeks
Malaysian Ringgit declines most in two weeks
24 Nov 2015
KUALA LUMPUR: The ringgit fell the most in two weeks on speculation last week’s rally was overdone given that oil prices remain depressed and China’s economy is still slowing.
The ringgit climbed 2.1% in the five days through Nov 20, rising along with other regional currencies after the Federal Reserve indicated it would increase interest rates gradually once it takes the first step, most likely in December.
The dollar’s seven-day relative-strength index reached 33 last Friday, near the 30 threshold that suggested the greenback was about to rebound.
“The ringgit was the best-performing currency last week, and today’s pullback looks to be on the back of some profit-taking,” said Khoon Goh, a Singapore-based senior foreign-exchange strategist at Australia & New Zealand Banking Group Ltd.
“The slight decline in oil prices also doesn’t help sentiment.”
The ringgit weakened 0.4% to 4.3030 a dollar in Kuala Lumpur, after gaining 1.4% last on Friday, according to prices from local banks compiled by Bloomberg.
It has still dropped 19% this year, the most in Asia, as Brent crude prices that have more than halved from a 2014 peak cut revenue for the region's only major net oil exporter. The commodity declined 2% yesterday.
Emerging-market currencies have come under pressure this year amid a looming US rate increase that’s spurred capital outflows. The odds for a December Fed move currently stand at 70%.
Overseas investors sold a net RM320.1mil of Malaysian shares last week, according to a report from MIDF Amanah Investment Bank.
That took net sales this year to RM18.5bil, more than double the RM6.9bil for all of 2014.
The nation’s foreign-exchange reserves decreased to US$93.9bil in the two weeks to Nov 13 from US$94bil.
The holdings have dropped 19% this year.
The ringgit climbed 2.1% in the five days through Nov 20, rising along with other regional currencies after the Federal Reserve indicated it would increase interest rates gradually once it takes the first step, most likely in December.
The dollar’s seven-day relative-strength index reached 33 last Friday, near the 30 threshold that suggested the greenback was about to rebound.
“The ringgit was the best-performing currency last week, and today’s pullback looks to be on the back of some profit-taking,” said Khoon Goh, a Singapore-based senior foreign-exchange strategist at Australia & New Zealand Banking Group Ltd.
“The slight decline in oil prices also doesn’t help sentiment.”
The ringgit weakened 0.4% to 4.3030 a dollar in Kuala Lumpur, after gaining 1.4% last on Friday, according to prices from local banks compiled by Bloomberg.
It has still dropped 19% this year, the most in Asia, as Brent crude prices that have more than halved from a 2014 peak cut revenue for the region's only major net oil exporter. The commodity declined 2% yesterday.
Emerging-market currencies have come under pressure this year amid a looming US rate increase that’s spurred capital outflows. The odds for a December Fed move currently stand at 70%.
Overseas investors sold a net RM320.1mil of Malaysian shares last week, according to a report from MIDF Amanah Investment Bank.
That took net sales this year to RM18.5bil, more than double the RM6.9bil for all of 2014.
The nation’s foreign-exchange reserves decreased to US$93.9bil in the two weeks to Nov 13 from US$94bil.
The holdings have dropped 19% this year.
Source: thestar.com.my