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 From Near 11-Week Low Before U.S. Budget Talks

Dec. 27 (Bloomberg) -- Malaysia’s ringgit rose, rebounding from near an 11-week low, before U.S. lawmakers today resume budget negotiations aimed at avoiding more than $600 billion in tax gains and spending cuts scheduled to take effect Jan. 1.

Secretary Timothy F. Geithner said yesterday the Treasury Department will take special measures to avoid breaking the debt ceiling, allowing more time for an agreement to be reached on budget revisions. Profits of industrial companies in China, Malaysia’s second-largest export market, rose for a third month in November, the National Bureau of Statistics said today.

“There seems to be slightly receding worries about the fiscal cliff issue,” said Vishnu Varathan, a Singapore-based economist at Mizuho Corporate Bank Ltd. “With their backs against the wall, policy makers may actually avoid the worst of it.”

The ringgit advanced 0.2 percent, the most since Dec. 11, to 3.0605 per dollar as of 5:01 p.m. in Kuala Lumpur, according to data compiled by Bloomberg. It touched 3.0788 on Dec. 26, the weakest level since Oct. 11. The currency has strengthened 3.5 percent this year.

One-month implied volatility, a measure of expected moves in exchange rates used to price options, rose four basis points, or 0.04 percentage point, to 4.56 percent. It was 8.5 percent at the end of 2011.

Government bonds were little changed. The yield on the 3.492 percent notes due March 2020 held at 3.45 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.

Please upgrade your Browser

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

Chrome, Firefox, Safari, Opera or Internet Explorer.