Ringgit has longest winning run since April
Malaysia’s ringgit climbed for the fourth day, its longest winning streak since April, as diminishing concern the US will attack Syria boosted demand for emerging-market assets. Government bonds were steady.
President Barack Obama has asked Congress to delay a vote on authorizing force against Syria while the administration pursues a Russian offer to get the regime to give up its chemical weapons. Malaysian exports rose for the first time in six months in July while factory output grew at the fastest pace in a year, according to data released this month. Industrial production in China, Malaysia’s second-biggest market, expanded the fastest in 17 months in August, a September 10 report showed.
"Syria tensions have reduced quite a lot," said Wong Chee Seng, a currency strategist at Ambank Group in Kuala Lumpur. "There’s been stronger Asian macro data flow, especially from China."
The ringgit strengthened 0.3 per cent to 3.2550 per dollar as of 9.30am in Kuala Lumpur after touching a one-month high of 3.2527, according to data compiled by Bloomberg. One-month implied volatility, a measure of expected moves in exchange rates used to price options, fell 14 basis points, or 0.14 percentage point, to 9.45 per cent.
Factory output grew 7.6 per cent in July from a year ago, the fastest pace since May 2012, according to official figures released yesterday. Overseas shipments increased 4.5 per cent in July from a year earlier, a September 6 report showed. A net US$3.2 billion has flowed into stock markets in India, Indonesia, the Philippines, South Korea, Taiwan and Thailand this week, according to data compiled by Bloomberg.
The yield on Malaysia’s 3.48 per cent sovereign notes due March 2023 was steady at 3.86 per cent, according to data compiled by Bloomberg.-- Bloomberg