Currency Ringgit extends gains as oil rebound brightens revenue outlook

by **Cals** Thu 05 Nov 2015, 01:34

Currency

[size=28]Ringgit extends gains as oil rebound brightens revenue outlook

By Bloomberg / Bloomberg | November 4, 2015 : 9:59 AM MYT

KUALA LUMPUR (Nov 4): Malaysia’s ringgit strengthened the most in more than a week as Brent crude rallied overnight to above $50 a barrel, brightening the outlook for Asia’s only major net oil exporter.

The ringgit gained along with other regional currencies on Wednesday as the Standard & Poor’s 500 Index of U.S. stocks climbed toward its record reached in May, with the positive sentiment rubbing off on Asian benchmarks.

Brent crude has struggled to maintain any advance above $50 and is still down by more than half from its 2014 peak, helping make Malaysia’s currency one of the worst performing this year in emerging markets.

The ringgit strengthened 0.5 percent to 4.2638 a dollar as of 9:12 a.m. in Kuala Lumpur, the most since Oct. 23, according to prices from local banks compiled by Bloomberg before the central bank meets to decide on its overnight policy rate on Thursday and Friday’s export data. It gained 0.4 percent on Tuesday.

“Higher oil prices and positive risk sentiment resulting from higher U.S. equities fueled the ringgit’s gains,” said Sim Moh Siong, a foreign-exchange strategist at Bank of Singapore Ltd. “I don’t think the OPR or export data will significantly drive the currency’s direction. ”

Policy makers will keep the benchmark rate at 3.25 percent, according to all 20 economists surveyed by Bloomberg, while exports likely increased for a fourth month in September.
[/size]