Investors hopeful BNM to step in as ringgit continues slide

PETALING JAYA: Investors in the Malaysian ringgit are hoping that Bank Negara Malaysia will step in to support the currency as it lingers near the weakest level since 1998.

While Bloomberg Economics expects no change in BNM’s policy rate, some analysts see the central bank announcing other measures to boost the ringgit. “BNM may also impose some temporary limits on foreign exchange positioning, and inducements for parking forex deposits and inward investments,” he said.BNM held its key rate at 3% since July, putting it at a record discount relative to the upper bound of the Federal Reserve funds rate.“For Malaysia, a number of factors favour a hold, including inflation that’s back near the long-term average,” according to Tamara Henderson, Southeast Asia economist at Bloomberg Economics.

In addition, United Overseas Bank said in a note that another 25-basis-point rate hike won’t be sufficient to close the interest-rate gap with the US and spur confidence in the ringgit, with the current policy differential at 250 basis points.The Southeast Asian nation’s currency also faces headwinds from a slowdown in China, its largest trading partner, as it posted seven straight months of decline in exports through September.

Source: Loan Digest (loandigest.net)

Malaysia Latest News, Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Ramai bersikap ‘jangka pendek’ dalam pengurusan kewangan, kata gabenor BNMAbdul Rasheed Ghaffour berkata separuh daripada rakyat sukar menyediakan RM1,000 bagi kecemasan.
Source: fmtoday - 🏆 5. / 72 Read more »

BNM governor raps those with short-term mindset in managing financesAbdul Rasheed Ghaffour says nearly half of Malaysians have difficulty setting aside RM1,000 for emergencies and are uninterested in buying insurance.
Source: fmtoday - 🏆 5. / 72 Read more »

BNM governor raps those with short-term mindset in managing financesKuala Lumpur: A considerable number of Malaysians are still adopting a short-term mindset when it comes to financial management, according to Bank Negara Malaysia (BNM) governor Abdul Rasheed Ghaffour.
Source: DailyExpress_MY - 🏆 3. / 83 Read more »

Many Malaysians have short-term mindset in financial management, says BNM governorKUALA LUMPUR, Oct 28 — A considerable number of Malaysians are still adopting a short-term mindset when it comes to financial management, according to Bank Negara Malaysia (BNM)...
Source: malaymail - 🏆 1. / 86 Read more »

1 daripada 3 rakyat kongsi kata laluan perbankan, kata timbalan gabenor BNMAdnan Zaylani Mohamad Zahid berkata, lebih 70% rakyat Malaysia tidak mengendahkan faktor keselamatan ketika berurusan di platform kewangan digital.
Source: fmtoday - 🏆 5. / 72 Read more »

Ringgit opens strongly amid upcoming US Fed and BNM meetingsKUALA LUMPUR, Oct 30 — The ringgit opened higher against the US dollar and other major currencies on the first day of trading for the week. The financial markets are closely...
Source: malaymail - 🏆 1. / 86 Read more »