MALAYSIAN RINGGIT IS ASIA'S WORST CURRENCY IN APRIL SO FAR

Brief analysis on Malaysian Ringgit
Malaysian Ringgit is Asia's worst currency in April so far


BLOOMBERG reported in Dubai, UAE on Wednesday 17 April 2019 that it was a one-two punch that's turned the Malaysian Ringgit into Asia's worst performer this month.

Less than two weeks ago, Norway said its sovereign wealth fund will cut emerging-market debt including Malaysian securities from its index.

Malaysia's withdrawal from the FTSE World Government Bond Index may lead to outflows of almost US$8 billion, based on the nation's weighting of 0.39 per cent, Morgan Stanley estimated.

Foreign investors have been reducing their Malaysian government bond positions since late 2016 and held about US$37 billion of the securities as of March 2019, Min Dai, a Hong Kong-based strategist at Morgan Stanley, wrote in a report.

The latest blow sent the ringgit sliding 0.6 per cent on Tuesday 16 April 2019, the worst performance since November 2016, and crossed its 100-day moving average versus the dollar. The nation's benchmark 10-year bond yield jumped by the most since October 2018.

The risk of dropping Malaysian bonds from the flagship index seems more likely than not, unless fundamental changes are made to improve Malaysia's market accessibility level, according to Winson Phoon, head of fixed-income research at Maybank Kim Eng Securities Ltd in Singapore.






by Fauzi Kadir
Permadu Malaysia
2019 All Rights Reserved

contact us
+60 11 1185 9874
permadu@gmail.com

pictures and technical support
Zafiyah Hussain


Comments

POPULAR POSTS from Permadu Malaysia

Beer, khalwat and a hundred other non-halal things

Handsome anak lelaki tunggal Anwar Ibrahim dan Wan Azizah

Singapura Tanam Padi

Kuasa didahulukan, reformasi dikemudiankan – realiti yang akan dilakukan semua perdana menteri

GEMPAR: MUFTI PERLIS TERLIBAT BUNUH AMRI CHE MAT?

Gaji CEO TNB khabarnya berjuta, tapi prestasi GLC itu macam tak sepadan

Jabatan Penjara Malaysia jawab "Abang Mat" mengenai layanan kepada Anwar sebagai banduan

Jika DAP dapat memberi kebaikan kepada orang Melayu, lebih baik dari pemimpin Melayu, apa masalahnya? Kalau...

Sekolah Kebangsaan – High Budget But Low Quality?

Inilah akibat terlampau banyak formula sebelum jadi menteri