Ringgit Advances as Industrial Production Projected to Improve
Malaysia’s ringgit strengthened for the first time in five days ahead of government data forecast to show factory output rose in May.
Industrial production gained 4.6 percent from a year earlier after increasing 3.2 percent in April, according to the median forecast of 12 economists surveyed by Bloomberg News before official figures due tomorrow. Domestic demand will continue to support Malaysia’s economy due to stable employment conditions and income growth, the central bank said after its policy meeting on July 5. Bank Negara Malaysia left its benchmark interest rate at 3 percent at the review.
“Malaysian fundamentals are reasonably solid,” said Thomas Harr, the Singapore-based head of Asian foreign-exchange strategy at Standard Chartered Plc. “But obviously there are a lot of concerns about the global slowdown.
The ringgit advanced 0.2 percent to 3.1820 per dollar as of 9:23 a.m. in Kuala Lumpur, according to data compiled by Bloomberg. One-month implied volatility, a measure of exchange- rate swings used to price options, held at 6.80 percent.
Government bonds were little changed. The yield on the 3.704 percent Islamic notes due September 2019 held at 3.45 percent, according to Bursa Malaysia.
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