Ringgit, won join relief rallies driving global stocks gain
KUALA LUMPUR, June 30 — Malaysia’s ringgit and the South Korean won rose for a third day as a rally in emerging-market assets continued after last week’s selloff in the wake of the UK decision to leave the European Union.
The ringgit is less than half a per cent away from wiping out losses since the close of trade on June 23 before the Brexit vote rattled markets. Crude prices climbed back above US$50 (RM200.66) a barrel yesterday, quelling concern about a loss of revenue for Malaysia as Asia’s only major net oil exporter.
The won extended its gains as factory output data today beat all forecasts in a Bloomberg survey, days after the government announced a 20 trillion won (RM69.6 billion) stimulus package.
“I’m looking at the rebound in risk and the firming in oil prices and those factors are very supportive,” said Stephen Innes, a senior trader at Oanda Asia Pacific Pte Ltd in Singapore.
“The global central bankers are in the background and the markets realise that the central bankers are going to stand in front of any capitulation.”
The ringgit strengthened 0.6 per cent to 4.0183 per US dollar as of 8.43am in Kuala Lumpur, according to prices from local banks compiled by Bloomberg.
The currency has gained more than two per cent in three days. The won appreciated 0.6 per cent to 1,153.60, and is 0.3 weaker than its closing price on June 23. — Bloomberg