Ringgit Rises From Six-Month Low After Exports, Output Improve
Malaysia’s ringgit climbed from a six-month low after exports increased by the most in eight months, spurring optimism about the country’ economic outlook.
Overseas sales increased 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 strengthened 0.1 percent to 3.1082 per dollar as of 9:16 a.m. in Kuala Lumpur, according to data compiled by Bloomberg. The currency touched 3.1170 yesterday, the weakest level since Sept. 7. One-month implied volatility, a measure of expected moves in exchange rates used to price options, rose three basis points, or 0.03 percentage point, to 6.8 percent.
Government bonds were steady. The yield on the 3.314 percent notes due October 2017 was 3.22 percent, according to data compiled by Bloomberg.
To contact the reporter on this story: Liau Y-Sing in Kuala Lumpur at firstname.lastname@example.org