March 12 (Bloomberg) -- Malaysia’s ringgit rebounded from a six-month low after exports increased by the most in eight months, spurring optimism about the country’ economic outlook. Government bonds were steady.
Overseas sales rose 3.5 percent in January from a year earlier, more than the 1.6 percent median estimate in a Bloomberg survey, official data showed yesterday. Growth in industrial production quickened to 4.6 percent from 3.5 percent in December, according to another report. Prime Minister Najib Razak must dissolve parliament by April 28 for a general election.
“The numbers show that Malaysia remains on track in terms of an export recovery,” said Enrico Tanuwidjaja, an economist in Singapore at Royal Bank of Scotland Group Plc. “There’s still a lot of concern about the election.”
The ringgit was unchanged at 3.1102 per dollar as of 4:27 p.m. in Kuala Lumpur, according to data compiled by Bloomberg. The currency reached 3.1045 earlier today, 0.4 percent stronger than the 3.1170 level touched yesterday, the weakest since Sept. 7. One-month implied volatility, a measure of expected moves in exchange rates used to price options, fell nine basis points, or 0.09 percentage point, to 6.68 percent.
The yield on the 3.26 percent notes due March 2018 was little changed at 3.23 percent, according to data compiled by Bloomberg.
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