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The Star
01-07-2025
- Business
- The Star
Ringgit rises to nine-month high on bond inflows, weaker dollar
Malaysia's ringgit advanced to the strongest level in nine months against the dollar, buoyed by foreign bond inflows and a broad weakness in the US currency. The ringgit climbed as much as 0.7% to 4.1805 per greenback, a level last seen in October. The currency has rallied in recent weeks amid signs the global trade war is easing, boosting sentiment for the export-dependent economy. Meanwhile, global funds poured $2.9 billion into Malaysia's bonds in May, according to Bank Negara Malaysia's latest data, the largest monthly inflow since October 2013. "We expect the ringgit to find support from a weaker dollar,' said Lloyd Chan, FX strategist at MUFG Bank Ltd. "Ringgit bonds have also been in high demand, supporting increased foreign participation in the local government bond market.' MUFG forecasted the ringgit to rise to 4.11 per dollar by end-2025, he added. Gains in the nation's assets have been driven by signs that trade agreements with as many as a dozen of America's largest trading partners are expected to be completed by the July 9 deadline. A trade truce between the US and China, the top two destinations for Malaysian exports according to 2024 data from the International Monetary Fund, has also lifted optimism. An index of dollar strength fell over 2% in June, its sixth straight decline, on bets of Federal Reserve interest rate cuts and concerns over the widening US fiscal deficit. - Bloomberg
Mint
21-04-2025
- Business
- Mint
Rupiah to Extend Losses as Bank Indonesia Battles Volatility
(Bloomberg) -- The Indonesian rupiah will extend this year's 4% decline due to fragile investor confidence, spurring further intervention by the central bank to stem volatility, according to analysts. MUFG Bank Ltd. expects the currency will weaken to 17,100 per dollar in coming months, while Barclays Bank Plc says its likely to test 17,200 by the first quarter of 2026 with Bank Indonesia intervening. The rupiah closed Monday at 16,805. The rupiah is the only major Asian currency to decline against the dollar this year as concerns grow over President Prabowo Subianto's controversial fiscal policies. The slide is putting pressure on the central bank as it balances efforts to support the currency, while keeping interest rates low to support growth. PT Bank Permata's chief economist Josua Pardede and PT Bank Danamon's Hosianna Evalita Situmorang both say Bank Indonesia may defend the currency when it weakens past 17,000. It slid a record low of 16,957 per dollar on April 9. 'If the rupiah breaches this threshold, the potential for market panic may increase, which could ultimately trigger greater capital outflows and further pressure on the exchange rate,' Bank Permata's Pardede said. Overseas investors have sold more than $1 billion of Indonesian stocks and $428 million of the nation's bonds bonds this month, data compiled by Bloomberg show. The rupiah slid for a fifth week last week, the longest string of such losses since October 2023. A weakening currency may accelerate capital outflows, while seeking to support the currency risks shrinking the central bank's foreign reserves. Bank Indonesia currently sits on a record high stockpile of reserves, boosted by tax and service revenues as well as the withdrawal of the government's foreign loans. 'We expect BI to lean heavily on its reserves' and tools such as domestic non-deliverable forwards to smooth volatility, while still tolerating some degree of currency adjustment, said Karinska Salsabila Priyatno, an analyst at PT Mirae Asset Sekuritas Indonesia. More stories like this are available on First Published: 22 Apr 2025, 01:47 AM IST
Bloomberg
21-04-2025
- Business
- Bloomberg
Rupiah to Extend Losses as Bank Indonesia Battles Volatility
The Indonesian rupiah will extend this year's 4% decline due to fragile investor confidence, spurring further intervention by the central bank to stem volatility, according to analysts. MUFG Bank Ltd. expects the currency will weaken to 17,100 per dollar in coming months, while Barclays Bank Plc says its likely to test 17,200 by the first quarter of 2026 with Bank Indonesia intervening. The rupiah closed Monday at 16,805.
Yahoo
24-02-2025
- Business
- Yahoo
Asian Currencies Advance as Dollar Retreats on German Results
(Bloomberg) -- The South Korean won led most emerging-Asian currencies higher as the dollar slid after Germany's conservative opposition leader won Sunday's federal election. Trump Targets $128 Billion California High-Speed Rail Project Trump Asserts Power Over NYC, Proclaims 'Long Live the King' Trump to Halt NY Congestion Pricing by Terminating Approval Airbnb Billionaire Offers Pre-Fab Homes for LA Fire Victims NYC's Congestion Pricing Pulls In $48.6 Million in First Month The Korean won and the Malaysian ringgit rose by 0.5% each on Monday. Other emerging market currencies like the Polish zloty and the Romanian leu also advanced. Stocks traded lower as US President Donald Trump restricted Chinese spending on some strategic US sectors. The dollar fell as the euro gained after Germany's conservative opposition leader Friedrich Merz said he'll move quickly to form a new government after he won Sunday's federal election. It's the global factors, including the German elections, raising some expectations for looser fiscal policy in Europe's largest economy, supporting EM currencies, said Michael Wan, senior currency analyst at MUFG Bank Ltd. That's helping EM currencies, he said. Emerging market currencies have been supported in recent days as US President Donald Trump has shown an inclination to negotiate on tariffs. 'Markets are right now underpricing tariff risks and being somewhat complacent about the multitude of tariffs that Trump 2.0 could put out over the next few months,' said Wan. Read: Dollar Reprieve Brings Global Funds Back to Emerging-Asia Stocks Walmart Wants to Be Something for Everyone in a Divided America Why Private Equity Is Eyeing Your Nest Egg Meet Seven of America's Top Personal Finance Influencers Can Dr. Phil's Streaming Makeover Find an Audience in the MAGA Era? How Med Spas Conquered America ©2025 Bloomberg L.P.
Bloomberg
13-02-2025
- Business
- Bloomberg
Baht's Rally Looks Set to Lose Steam on Trade Angst, Stock Slump
The rally in Thailand's baht this year looks primed to peter out on escalating global trade tensions and a slump in the nation's equities. The baht has gained 2.7% over the past month to hit 33.817 per dollar on Thursday, marking the best performance among Asian currencies. But it may weaken to 36 per dollar in the second quarter after a seasonal boost at the start of the year loses steam, according to MUFG Bank Ltd.
