Malaysian Ringgit Shows Signs Of Improvement
The Malaysian Ringgit bounced back to 4.219 against US dollars on Friday, boosting confidence for markets and is expected to strengthen further in the coming weeks, according to currency strategists.
The stimulus measures launched by the Finance Ministry to support the local stock market earlier this week were among the factors that strengthen the fledgling currency, said Dr Suresh Ramanathan, an independent interest rate and foreign exchange strategist.
The Ringgit tumbled beyond four to the dollar for the first time since 1998, along with a slowing economy and political uncertainties.
The devaluation of the yuan had further increased the pressure on the local currency leading to losses in Asia, resulting in the Ringgit being the worst performer in the past 12 months.
The Ringgit weakened to a new 17-year low against the US dollar and also breached the 3.00 level against the Singapore dollar three weeks ago.
Prime Minister Datuk Seri Najib Tun Razak put in place measures to address issues faced by the Malaysian economy, to support the stock market rather than as a catalyst to bolster the local economy.
One of the most significant measures is the RM20bil allocation to ValueCap, which was set up in 2002 to support underperforming shares.