Ringgit Trades Near 11-Week High as Exports Forecast to Recover

Malaysia’s ringgit traded near an 11- week high ahead of data forecast to show the Southeast Asian nation’s exports rebounded.

Overseas shipments increased 2.3 percent in November from a year earlier, after contracting 3.2 percent in October, according to the median forecast of economists in a Bloomberg survey before official figures due today. Malaysian trade will grow 5 percent this year, compared with 4 percent in 2012, International Trade and Industry Minister Mustapa Mohamed was quoted as saying in a Jan. 7 Bernama report.

The ringgit traded at 3.0436 per dollar as of 8:43 a.m. in Kuala Lumpur, near yesterday’s close of 3.0434, according to data compiled by Bloomberg. It touched 3.0394, near the 3.0296 level reached on Jan. 3, which was the strongest since Oct. 18. One-month implied volatility, a measure of expected moves in exchange rates used to price options, fell 13 basis points, or 0.13 percentage point, to 5.09 percent.

“The pace of export growth will be mildly positive in the next few months,” said Choong Yin Pheng, senior manager for fixed income and economic research at Hong Leong Bank Bhd. (HLBK) in Kuala Lumpur. “I’m still looking at the ringgit to trade at the 3.03 to 3.06 level in the first quarter.”

Government bonds declined yesterday. The yield on the 3.314 percent notes due October 2017 climbed four basis points, or 0.04 percentage point, to 3.26 percent, according to Bursa Malaysia.

To contact the reporter on this story: Liau Y-Sing in Kuala Lumpur at yliau@bloomberg.net

To contact the editor responsible for this story: James Regan at jregan19@bloomberg.net.

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