KUALA LUMPUR: Malaysia’s ringgit was poised for the biggest monthly gain since 2008 as a rebound in crude prices brightened prospects for Asia’s only major oil exporter.
The currency strengthened 4.3 percent against the dollar so far in April, Asia’s best performance.
Brent crude jumped 19 percent this month, set for the steepest rise since 2009.
Central bank Governor Tan Sri Dr Zeti Akhtar Aziz said on April 18 that the currency, the region’s worst performer of the last two quarters with an 11 per cent slide, was undervalued. A gauge of dollar strength retreated for a sixth day on Wednesday as data showed US gross domestic product rose less than economists estimated.
“The oil story is an important factor,” said Nizam Idris, head of foreign-exchange and fixed-income strategy at Macquarie Bank Ltd. in Singapore. “People who are long dollar-ringgit are also unwinding their positions following the weaker GDP data in the US”
The ringgit appreciated 0.2 per cent on Thursday to 3.5530 per dollar as of 11:09 a.m. in Kuala Lumpur, according to data compiled by Bloomberg. It rose as high as 3.5388, the strongest since Feb. 6.
The Bloomberg U.S. Dollar Index, which tracks the greenback versus 10 major currencies, was little changed today and has declined 3 percent in April, snapping a run of nine straight monthly increases. First-quarter GDP in the world’s biggest economy grew 0.2 percent, less than the 1 percent median estimate in a Bloomberg survey and the 2.2 percent expansion in the preceding three months.
Malaysian bonds advanced. The 10-year yield was little changed on Thursday at 3.86 percent and fell four basis points, or 0.04 percentage point, for the month. Government notes returned 0.5 percent in April for a fourth monthly gain, a Bloomberg index shows. -- Bloomberg