Fast & Furious Ringgit Needs to Take Pit Stop, State Street Says
- Ringgit has outperformed Asian peers on hawkish central bank
- Overseas investors bought almost $2 billion of debt in Sept.
Malaysian fifty ringgit banknotes are arranged for a photograph in Tokyo, Japan, on Friday, Aug. 14, 2015.
Photographer: Kiyoshi Ota/BloombergThis article is for subscribers only.
After going from last to first in Asia, the Malaysian ringgit may be headed for a break -- before resuming its rally.
Momentum indicators, including slow stochastics, show the ringgit is overbought. The currency has surged 3.6 percent against the dollar in the past month, the best performer as oil prices climbed and the central bank signaled a potential interest-rate increase. It was the worst-ranked emerging Asian currency in the same four-week period last year, as a crackdown on speculators and expectations of a stronger greenback spurred outflows.