Ringgit weakens on Europe debt crisis

by **hlk** Tue 19 Jul 2011, 08:01

THE ringgit closed lower against the US dollar yesterday, as concerns over the European debt crisis sapped interest for assets in emerging markets.

The euro weakened against major currencies after the eurozone bank stress-test failed to provide any relief for the currency.

The ringgit was easier against the US dollar at 3.0125/0155 from 3.0050/0080 last Friday.

The ringgit was also weaker against other major currencies.

Against the Singapore dollar, the ringgit was lower at 2.4707/4742 from 2.4651/4696 on Friday and easier versus the Japanese yen at 3.8114/8166 from 3.7918/7965 previously.

It slipped against the British pound at 4.8468/8525 from 4.8341/8399 on Friday but appreciated against the euro to 4.2326/2377 from 4.2467/2518 previously.

INTERBANK RATES

SHORT-TERM rates closed stable yesterday as Bank Negara Malaysia continued to mop up excess liquidity from the money market, dealers said.

The overnight rate was pegged at 2.99 per cent while the one, two and three-week rates were pegged at 3.02, 3.04 and 3.06 per cent, respectively.

The liquidity surplus in conventional operations was reduced to RM18.45 billion, from an earlier estimate of RM26.69 billion, while the surplus in the Islamic system was reduced to RM6.31 billion, from RM10.69 billion yesterday morning.

Bank Negara yesterday called for four conventional, three Al-Wadiah, repo and Commodity Murabahah Programme tenders. It also called for late tenders comprising a RM18.2 billion conventional money market tender and an Al-Wadiah tender for RM6.3 billion, both for one-day money.

KLIBOR

THE three-month Kuala Lumpur Interbank Offered Rate (KLIBOR) futures contracts on Bursa Malaysia Derivatives closed flat yesterday with the market dominated by strip trades.

Strip trades of 50 lots involving 12 contract months from September 2011 to June 2014 were recorded, with all remaining unchanged at last Friday's settlement prices.

December 2012 was flat at 96.33 with 250 lots traded.

Turnover stood at 800 lots while open interest was at 20,453 contracts. There was no trading recorded last Friday.

The five-year Malaysian Government Securities futures were untraded.

The underlying three-month KLIBOR was unchanged at 3.29 per cent recorded previously. - Bernama