Malaysia’s ringgit rose for a sixth day as Brent crude climbed to the highest in four months in New York on optimism major oil producers will agree to a production freeze at a meeting in Doha this weekend.
The currency led gains in Asia as such an outcome may help sustain a rebound in the commodity from a 12-year low reached in January and bolster finances for Malaysia, the region’s only major net oil exporter. Russia sees a deal on freezing oil output as possible regardless of Iran’s stance after talks with Saudi Arabia, Dmitry Peskov, the Kremlin’s press secretary, said following the latest conversation between Russian Energy Minister Alexander Novak and his Saudi counterparts.
The ringgit was supported by “continued unwinding of dollar-longs and supported by oil prices on hopes of a freeze at Doha,” said Christopher Wong, foreign-exchange strategist at Malayan Banking Bhd. in Singapore.
“Decent buying of Malaysian government bonds also helped.”
The currency rose 0.9% to 3.8477 per dollar as of 8.30am in Kuala Lumpur, according to prices from local banks compiled by Bloomberg. It earlier touched 3.8465, the strongest since August. In July last year, the ringgit weakened beyond its 3.8 peg to the dollar at which it was pinned during the Asian financial crisis until 2005.
Investors boosted holdings of Malaysian government bonds to a record in March, the latest central bank figures show. The 10-year yield dropped on Tuesday to a 14-month low of 3.75%.
The appreciation in the ringgit could prove temporary however, as Brent crude retreated on Wednesday after climbing above US$44 ($59) a barrel in New York for the first time since December. It fell 0.8% to US$44.32 as US industry data showed crude stockpiles expanded, which would exacerbate a global supply glut without an accompanying production freeze by major producers.
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The currency led gains in Asia as such an outcome may help sustain a rebound in the commodity from a 12-year low reached in January and bolster finances for Malaysia, the region’s only major net oil exporter. Russia sees a deal on freezing oil output as possible regardless of Iran’s stance after talks with Saudi Arabia, Dmitry Peskov, the Kremlin’s press secretary, said following the latest conversation between Russian Energy Minister Alexander Novak and his Saudi counterparts.
The ringgit was supported by “continued unwinding of dollar-longs and supported by oil prices on hopes of a freeze at Doha,” said Christopher Wong, foreign-exchange strategist at Malayan Banking Bhd. in Singapore.
“Decent buying of Malaysian government bonds also helped.”
The currency rose 0.9% to 3.8477 per dollar as of 8.30am in Kuala Lumpur, according to prices from local banks compiled by Bloomberg. It earlier touched 3.8465, the strongest since August. In July last year, the ringgit weakened beyond its 3.8 peg to the dollar at which it was pinned during the Asian financial crisis until 2005.
Investors boosted holdings of Malaysian government bonds to a record in March, the latest central bank figures show. The 10-year yield dropped on Tuesday to a 14-month low of 3.75%.
The appreciation in the ringgit could prove temporary however, as Brent crude retreated on Wednesday after climbing above US$44 ($59) a barrel in New York for the first time since December. It fell 0.8% to US$44.32 as US industry data showed crude stockpiles expanded, which would exacerbate a global supply glut without an accompanying production freeze by major producers.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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