June 19 (Bloomberg) -- Malaysia’s ringgit fell, reversing an earlier gain, after Greek leaders formed a group to renegotiate an international bailout, adding to concern the European debt crisis may worsen.
A national team will review the terms of the aid plan, Evangelos Venizelos, the head of Greece’s Pasok party, said in Athens in comments carried live on state-run television today. Emerging-market nations including China and Brazil formalized funding pledges to the International Monetary Fund after a two-day summit in Mexico, helping to almost double its lending power to protect the world economy from a slowdown caused by Europe.
“There’s talk that Greek leaders are forming a group to renegotiate the bailout austerity program and that rattled the market,” said Suresh Kumar Ramanathan, a Kuala Lumpur-based currency strategist at CIMB Investment Bank Bhd. “This new government is facing hiccups.”
The ringgit fell 0.1 percent to 3.1600 per dollar as of 4:49 p.m. in Kuala Lumpur, according to data compiled by Bloomberg. It rose as much as 0.2 percent earlier. One-month implied volatility, a measure of exchange-rate swings used to price options, was little changed at 8.40 percent.
Government bonds advanced. The yield on the 3.58 percent notes due September 2018 declined three basis points, or 0.03 percentage point, to 3.37 percent, according to Bursa Malaysia.
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