Bursa Alert
Global Market
NewsRinggit plumbs 3-year lows after Fitch outlook cut
Page 1 of 1
Ringgit plumbs 3-year lows after Fitch outlook cut
by Cals Wed 31 Jul 2013, 10:30
Ringgit plumbs 3-year lows after Fitch outlook cut
Business & Markets 2013
Written by Reuters
Wednesday, 31 July 2013 10:20
SINGAPORE (July 31): The Malaysian ringgit plumbed three-year lows on Wednesday after Fitch Ratings downgraded the country's credit outlook, leading losses among emerging Asian currencies before the result of the Federal Reserve's policy meeting and U.S. growth data.
The ringgit fell as much as 0.6 percent to 3.2450 per dollar, the weakest since July 1, 2010, on dollar demand from custodian banks, traders said.
The ringgit recovered from early low to stand at 3.2430 per dollar by 0150 GMT, as investors were wary of possible intervention by the central bank to support the currency, though they described the market as fairly calm.
It is technically seen oversold with the 14-day dollar/ringgit relative strength index (RSI) at 70.9.
A reading above the 70 threshold indicates the dollar is overbought against the ringgit.
Still, sentiment for the ringgit remains fragile after ratings agency Fitch cut its outlook on Malaysia's sovereign debt to negative on Tuesday citing darker prospects for reforms to tackle the country's rising debt burden.
"The negative sentiment around the ringgit still persists," said a foreign bank trader in Singapore.
"Any dips (recovery in the ringgit) will be shallow, unless today Ben becomes dovish," said the trader, referring to Fed Chairman Ben Bernanke.
The ringgit could weaken to 3.2600, the session low on July 1, 2010, he added. Ten-year Malaysian government bond yields rose to 4.065 percent, the highest since late April 2011.
Investors were keeping an eye on redemption of maturing bonds with 9.2 billion ringgit ($2.9 billion) due during the day, according to central bank data. Some currency traders said most outflows linked to the maturity had been completed. - Reuters
Business & Markets 2013
Written by Reuters
Wednesday, 31 July 2013 10:20
SINGAPORE (July 31): The Malaysian ringgit plumbed three-year lows on Wednesday after Fitch Ratings downgraded the country's credit outlook, leading losses among emerging Asian currencies before the result of the Federal Reserve's policy meeting and U.S. growth data.
The ringgit fell as much as 0.6 percent to 3.2450 per dollar, the weakest since July 1, 2010, on dollar demand from custodian banks, traders said.
The ringgit recovered from early low to stand at 3.2430 per dollar by 0150 GMT, as investors were wary of possible intervention by the central bank to support the currency, though they described the market as fairly calm.
It is technically seen oversold with the 14-day dollar/ringgit relative strength index (RSI) at 70.9.
A reading above the 70 threshold indicates the dollar is overbought against the ringgit.
Still, sentiment for the ringgit remains fragile after ratings agency Fitch cut its outlook on Malaysia's sovereign debt to negative on Tuesday citing darker prospects for reforms to tackle the country's rising debt burden.
"The negative sentiment around the ringgit still persists," said a foreign bank trader in Singapore.
"Any dips (recovery in the ringgit) will be shallow, unless today Ben becomes dovish," said the trader, referring to Fed Chairman Ben Bernanke.
The ringgit could weaken to 3.2600, the session low on July 1, 2010, he added. Ten-year Malaysian government bond yields rose to 4.065 percent, the highest since late April 2011.
Investors were keeping an eye on redemption of maturing bonds with 9.2 billion ringgit ($2.9 billion) due during the day, according to central bank data. Some currency traders said most outflows linked to the maturity had been completed. - Reuters
Cals- Administrator
- Posts : 25277 Credits : 57721 Reputation : 1766
Join date : 2011-09-08
Location : global
Comments : “My plan of trading was sound enough and won oftener that it lost. If I had stuck to it Iâ€
d have been right perhaps as often as seven out of ten times.â€
Stock Exposure : Technical Analysis / Fundamental Analysis / Mental Analysis
Similar topics» Currency Malaysian ringgit falls to 10-year low on Fitch review, Greece
» Europe Roundup: At two-year lows
» Update Oil rallies but still near 6-1/2-year lows
» Fitch: ‘Negative’ outlook on M’sia
» Fitch affirms U.S. at AAA, outlook stable
» Europe Roundup: At two-year lows
» Update Oil rallies but still near 6-1/2-year lows
» Fitch: ‘Negative’ outlook on M’sia
» Fitch affirms U.S. at AAA, outlook stable
Page 1 of 1
Permissions in this forum:
You cannot reply to topics in this forum|
|
|