Ringgit Snaps Two-Day Loss as Economic Growth Seen Quickening
Malaysia’s ringgit climbed for the first time in three days before data today that is forecast to show economic growth accelerated and inflation held at the slowest pace since 2010. Government bonds declined.
Gross domestic product increased 5.5 percent in the fourth quarter from a year earlier, compared with 5.2 percent in the preceding three months, according to the median estimate in a Bloomberg survey before figures due at 6 p.m. in Kuala Lumpur. Consumer prices rose 1.2 percent in January, matching December’s 34-month low, a separate Bloomberg survey showed. German investor confidence climbed to the highest in almost three years, an index released yesterday shows.
“The Malaysian currency is stronger because people are expecting better GDP numbers to be released later today,” said Yeo Chin Tiong, head of financial markets at Alliance Bank Bhd. in Kuala Lumpur. “Asian currencies are firmer because of the good data from Germany.”
The ringgit appreciated 0.4 percent to 3.0950 per dollar as of 9:32 a.m. in Kuala Lumpur, after losing 1 percent in the first two days of the week, according to data compiled by Bloomberg. The currency touched 3.0915, near the 3.0780 level reached last week that was the strongest since Jan. 31. One- month implied volatility, a measure of exchange-rate swings used to price options, held at 7.3 percent.
The yield on the 3.418 percent notes due August 2022 rose two basis points, or 0.02 percentage point, to 3.49 percent, according to Bursa Malaysia.
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