Ringgit weakens on FTSE bond exclusion jitters, lower oil: Mizuho

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KUALA LUMPUR (April 16): Ringgit’s decline on Tuesday is driven by concern that FTSE Russell may drop Malaysian bonds from its global index, with falling oil prices also weighing on the currency, according to Mizuho Bank Ltd.

* NOTE: USD/MYR gains as much as 0.6% to 4.1315, highest since Jan 25

* Ringgit is also weighed down by headlines from former PM Datuk Seri Najib Razak’s trial relating to state fund 1MDB and Malaysia’s dispute with the European Union over palm oil, says Vishnu Varathan, head of economics and strategy at Mizuho in Singapore

* “So really, it is a conspiracy of the bears for ringgit at this moment,” says Varathan