Ringgit climbs with bonds as political rallies pass peacefully

Posted by Trading Advisor on 7:13 PM with No comments
Malaysia's ringgit rose to a one-week high and bonds rallied after weekend protests calling for the resignation of Prime Minister Najib Razak ended peacefully. An overnight surge in oil prices also aided local markets as they reopened after Monday's National Day holiday.
 
191529122692 - 02_09_2013 - MALAYSIA RINGGIT.jpgThe currency appreciated 0.7 per cent to 4.1645 a dollar in Kuala Lumpur, extending its recovery from a 17-year low of 4.2990 reached on Aug. 26, according to prices from local banks compiled by Bloomberg. It rose as much as 1.2 per cent earlier to 4.1430. The 10-year government bond yield dropped 17 basis points to 4.23 per cent, the biggest decline since 2013, Bursa Malaysia prices show.

Brent crude prices climbed 8.2 per cent in New York on Monday, easing concern that government finances will deteriorate for Asia's only major net oil exporter. The political rallies in the capital failed to draw a large number of ethnic Malays, a sign that a funding scandal enveloping Najib has yet to cause major dissent within his grassroots power base.
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