FX Ringgit 23rd July 2010

[HIDDEN]

hi,

Here's the FX reports for the ringgit and other currencies for the week ending Friday, 23rd July 2010 :


July 23, 2010 18:09 PM
FOREX: Ringgit Closes Firmer Against US Dollar
KUALA LUMPUR, July 23 (Bernama) -- The ringgit closed firmer against the US dollar Friday, supported by the data released by the German Ifo (income from operations), which was above forecasts, said dealers.

The data stated the German Business Climate Index for July was 106.2, beating a consensus for 101.6.

At 5pm, the ringgit closed at 3.1985/2015 from 3.2070/2120 yesterday.

However, the forex market is expected to react to the release of the much-awaited results of the European stress tests today.

The players are also cautious as a Spanish newspaper reported some of the country's 18 savings banks had failed the stress tests to see how strong they would be if economic conditions worsened.

Meanwhile, the ringgit appreciated against the Singapore dollar to 2.3319/3362 from 2.3376/3418 Thursday and rose against the Japanese yen to 3.6710/6765 from 3.6998/7060 Thursday.

However, it depreciated against the British pound to 4.9228/9287 from 4.8948/9041 Thursday and dipped against the Euro to 4.1382/1424 from 4.1175/1242 on Thursday.
End of Article
BERNAMA


I can't locate the usual AmResearch Treasury Pulse article. It's not online and I don't have a copy of The Star to type from. So here's a slightly earlier Bloomberg report.


July 21, 20101 : Ringgit Leads Asian Currencies Higher on Signs Inflows
(Bloomberg) -- Asian currencies climbed, led by the Singapore dollar and Malaysia’s ringgit, on optimism fund inflows will increase as the region leads a recovery in the global economy.

Malaysia’s ringgit rose after state investment arm Khazanah Holdings Bhd. sold part of its stake in Telekom Malaysia Bhd. to local and overseas investors. The Southeast Asian nation will release data today that economists forecast will show inflation accelerated, boosting speculation the central bank will allow currency appreciation. Thailand reported export data for June that beat economists’ predictions. Taiwan’s government said yesterday that orders for overseas shipments climbed.

“Many countries in Asia are in a rate-hike cycle and have strong economic fundamentals,” said Yuji Kameoka, a senior economist based in Tokyo at the Daiwa Institute of Research Ltd. “These factors encourage buying of Asian assets, helping to boost their currencies in the longer run.”

Singapore’s dollar gained 0.2 percent to S$1.3725 per dollar as of 4:12 p.m. in the city-state, according to data compiled by Bloomberg. The ringgit rose 0.2 percent to 3.2140, while South Korea’s won advanced 0.1 percent to 1,204.50.

Overseas investors bought more stocks of India, Indonesia, the Philippines, South Korea and Taiwan than they sold this month, according to data from stock exchanges. They purchased a net $1.12 billion in Korea, $1.02 billion in Taiwan and $1.93 billion in India through yesterday.

Borrowing Costs

Central banks in Malaysia, India, Taiwan, South Korea and Thailand have all raised borrowing costs this year. Policy makers in the region must allow more currency appreciation to cope with inflows and enable a more gradual pace of rate increases, the Asian Development Bank said yesterday. The won strengthened for a second day after nations receiving financial support from the European Union were successful in selling bonds, adding to signs that the region’s debt crisis is easing.

Spain, Ireland and Greece auctioned almost 10 billion euros ($13 billion) of debt yesterday. Overseas investors bought more Korean shares than they sold for the first time in three days, and the Kospi index climbed the most in a week.

Inflation Outlook

Malaysia’s benchmark stock index climbed for a second day after Khazanah yesterday sold a 5 percent stake in Telekom worth $181 million in a private placement, according to two bankers with knowledge of the deal. Consumer prices in the nation increased 1.7 percent in June from a year earlier, the most in more than a year, according to a Bloomberg survey.

“The ringgit remains supported by foreign fund flows, and stock appetite has improved a bit,” said Ahmad Zubaidi Samse, a currency trader at Bank Muamalat Malaysia Bhd. in Kuala Lumpur. “It’s still influenced by regional moves and economic data.”

Thailand’s baht appreciated after a government report showed exports increased 46.3 percent in June, compared with a gain of 42.1 percent in May. Economists in a Bloomberg survey had predicted a 34.5 percent increase. The baht rose 0.1 percent to 32.28 per dollar.

Taiwan’s dollar closed onshore trading at NT$32.15 from NT$32.155 yesterday. The government said late yesterday that export orders, an indication of shipments in the next one to three months, increased 22.5 percent in June. Economists had forecast a gain of 21.7 percent. “Export orders were better than expected,” said Yang Kung-yi, a foreign-exchange trader at Shanghai Commercial & Savings Bank in Taipei.

Elsewhere, India’s rupee appreciated 0.1 percent to 47.3074 per dollar. The Philippine peso fell 0.1 percent to 46.475, and Indonesia’s rupiah traded at 9,058 from 9,052 yesterday.
End of Article
Bloomberg
http://www.businessweek.com/news/2010-07-21/ringgit-leads-asian-currencies-higher-on-signs-inflows-to-rise.html