Ringgit climbs to 13-year high

Malaysia's ringgit climbed to the strongest level in 13 years as better-than-expected growth in US employment brightened the outlook for exports to the world's biggest economy.


The currency strengthened for a fourth day and benchmark stock indexes rose across Asia after a US government report showed private payrolls increased 67,000 in August, more than the 40,000 forecast in a survey of economists.

Malaysia's trade ministry last week reported a 13.5 per cent gain in July exports, an eighth straight advance.

"The market is getting back its confidence, especially if the US comes out with more fiscal or monetary stimulus," said Godwin Chan, a foreign-exchange trader at OSK Investment Bank Bhd. in Kuala Lumpur.

"We see this benefiting stocks and risk currencies."

The ringgit gained 0.3 per cent to 3.1115 per dollar as of 9.57am in Kuala Lumpur, taking this year's gain to 10 per cent, according to data compiled by Bloomberg.

It earlier touched 3.1098, the strongest level since October 1997. The ringgit may reach 3.05 this year, Chan said.

Overseas investors held RM102 billion of ringgit-denominated debt at the end of July, 47 per cent more than at the start of this year, central bank data show. They boosted their holdings of government bonds by 51 per cent to record RM62 billion. - Bloomberg

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