Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Ringgit Rebounds as IMF Predicts Chinese Recovery Next Year

Don't Miss Out —
Follow us on:

Oct. 9 (Bloomberg) -- The ringgit rebounded from its biggest loss in four months on optimism Chinese growth will recover, brightening the outlook for Malaysian exports.

The International Monetary Fund predicted today Asia’s largest economy will expand 8.2 percent in 2013, compared with 7.8 percent this year, while Malaysia’s gross domestic product will increase 4.7 percent from 4.4 percent. A purchasing managers’ index for services in China released yesterday by HSBC Holdings Plc and Markit Economics indicated a preliminary reading of 54.3 in September, compared with 52 the month before. China was Malaysia’s second-biggest export market in August.

“The better Chinese data is giving some support to Asian currencies including the ringgit,” said Azmi Shukri Rahman, a foreign-exchange trader at CIMB Investment Bank Bhd. in Kuala Lumpur.

The ringgit advanced 0.1 percent to 3.0731 per dollar as of 4:06 p.m. in Kuala Lumpur, according to data compiled by Bloomberg. The currency dropped 0.8 percent yesterday, the most since June 1. The ringgit is unlikely to strengthen beyond 3.06 per dollar, Azmi Shukri said. One-month implied volatility, a measure of exchange-rate swings used to price options, was unchanged at 7 percent.

Industrial production in Malaysia fell 2 percent in August from a year earlier after increasing 1.4 percent in July, according to the median estimate of 19 economists in a Bloomberg News survey before official data due tomorrow.

Government bonds were little changed. The yield on the 3.314 percent notes due October 2017 held at 3.29 percent, according to Bursa Malaysia. The treasury will auction 2.5 billion ringgit ($814 million) of Shariah-compliant securities maturing in August 2017 on Oct. 12, the central bank said on its website yesterday.

To contact the reporter on this story: Elffie Chew in Kuala Lumpur at Echew16@bloomberg.net

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

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.