0621 GMT [Dow Jones] USD/MYR is slightly higher, implying a weaker ringgit, as currency traders speculate that Malaysia may announce capital control measures Tuesday. The drastic measure is a possible short-term solution to stemming outflows triggered by the collapse of crude oil prices, which has whittled investor confidence in oil-exporting Malaysia. Prime Minister Najib Razak said Monday that economic modifications and interventions will be announced Tuesday to address the 55% decline of oil prices since June 2014. Capital control measures could keep the countrys current account from worsening but would likely sink the ringgit--at least in the offshore market, where investors exposed to Malaysia would try to hedge their bets. The ringgit in the onshore market could be less volatile if regulations are announced that limit the selling of ringgit. USD/MYR is now 3.5650 from its Friday close of 3.5570.
Posted on: Mon, 19 Jan 2015 08:54:09 +0000
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