Ringgit Falls Toward Weakest in Three Months After Oil Declines

  • Attention now turns to PMI reports, payrolls, ANZ’s Goh says
  • Won is second-best developing-nation currency in past 3 months

Malaysia’s ringgit approached a three-month low against the dollar after a decline in crude oil damped the outlook for the energy exporting economy.

The ringgit fell the most among emerging-market currencies after Brent crude slid almost 3 percent Tuesday before major producers meet in Algiers to discuss limiting output. Emerging-market currencies rose Tuesday as investors judged Hillary Clinton won the first U.S. presidential debate, reducing the likelihood a Donald Trump election victory will roil financial markets. The U.S. and China are among nations publishing manufacturing data in the coming week based on purchasing managers’ indexes.

“The ringgit is weaker on the back of lower oil prices,” said Khoon Goh, head of regional research at Australia & New Zealand Banking Group Ltd. in Singapore. “With the first U.S. presidential debate out of the way, the focus turns to the various PMI data due at the turn of the month, and next week’s U.S. payrolls number.”

The ringgit declined 0.3 percent to 4.1385 per dollar as of 10:05 a.m. in Hong Kong after depreciating to 4.1605 on Sept. 21, the weakest level since June 27. The South Korean won gained 0.2 percent to 1,095.75 per dollar.

The won has strengthened 6.9 percent in the past three months, the best performer behind the South African rand of 24 developing-nation currencies tracked by Bloomberg.

“The won’s level has become burdensome and vigilance about possible intervention has risen,” Ha Keon Hyeong, an economist at Shinhan Investment Corp. in Seoul, wrote in a report. The currency is likely to trade in range of 1,094 to 1,102, he said.

South Korean government bonds rose, with the 10-year yield dropping four basis points to 1.46 percent. Malaysian five-year bond yields were little changed at 3.24 percent.

Before it's here, it's on the Bloomberg Terminal.