Ringgit rises to 1-year high on crude optimism

Ringgit rises to 1-year high on crude optimism
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SINGAPORE (Nov 15): Ringgit advances to its highest level in a year against the dollar, as investors bet that the nation would benefit from higher crude revenue and as the currency catches up with regional gains.

* USD/MYR falls 0.2% to 4.1835, after touching intra-day low of 4.1795

* “MYR is benefiting from higher oil prices and a weaker USD, at present," says Mitul Kotecha, head of Asia FX rates and strategy at Barclays Bank in Singapore. Forecasts USD/MYR at 4.00 by end Q3 18

** Says the ringgit will strengthen in the months ahead due to factors including undervaluation, healthier FX reserves, and stabilization in imports and short-term debt coverage

* Analysts from UOB, Nomura and Mizuho says ringgit could benefit from sustained stronger oil prices

* Country sells 3b ringgit 2027 Islamic bonds to yield 4.347% on Nov. 14; demand for the Shariah-compliant debt exceeds amount on
offer by 1.83 times

* Foreign insurers may consider listing in Malaysia to meet a minimum shareholding requirement of 30%, CIMB analyst Winson Ng writes

* Prime Minister Najib to meet with Indonesia’s president next week, and will probably discuss how to protect the palm oil market against discriminatory policies proposed by the EU, according to Plantation Industries and Commodities Minister Mah Siew Keong

* 10-year bond yield little changed at 4.06%