Despite Strong Demand, Ringgit still lower against US dollar
Filed Under (Money Market) by Fred Chan on 14-04-2009
Tagged Under : ringgit, US dollar
THE ringgit ended yesterday lower against the US dollar despite strong demand for the currency for commercial purposes, said dealers.
They said sentiment on financial and capital markets, however, remained strong with broader interest seen on the local stock market.
The benchmark Kuala Lumpur Composite Index hit the highest point in six months today at 941.41.
At 5pm yesterday, the ringgit was lower against the US dollar at 3.6270/6320 compared with the 3.6135/6185 quoted at last Friday’s closing.
Second Finance Minister Datuk Ahmad Husni Hanadzlah, said yesterday that Malaysia had no plans to re-examine the country’s managed float of the ringgit.
“The ringgit’s managed float mechanism is well in place to protect (us) from fluctuations. I see no reason to re-look this at the moment,” he added.
The local unit was also weak against the Singapore dollar at 2.3934/3991 from 2.3781/3861 last Friday and lower against the Japanese yen at 3.6029/6089 from 3.5970/6026 previously.
The ringgit depreciated against the British pound at 5.3364/3456 from 5.2858/2942 last Friday as well as against the euro at 4.7898/7982 from 4.7449/7525 previously.
INTERBANK RATES
Short-term rates ended stable yesterday as Bank Negara Malaysia intervened in the money market to absorb surplus funds, dealers said.
The overnight rate remained at 1.94 per cent while the one-week, two-week and three-week rates were at 1.95 per cent, 1.97 per cent and 1.99 per cent respectively.
The total liquidity surplus in the conventional system decreased to RM7.824 billion from the RM14.084 billion estimated earlier.
For Islamic funds, the total liquidity surplus was reduced to RM4.071 billion from an earlier estimate of RM5.540 billion.
The central bank conducted a late conventional tender for RM7.8 billion of one-day money and an Al-Wadiah tender for RM4.0 billion of one-day money.
KLIBOR
THE three-month Kuala Lumpur Inter-Bank Offered Rate (KLIBOR) futures contracts on Bursa Malaysia Derivatives were dominated by strip trade yesterday, dealers said.
The futures market saw five strip trades of 10 lots each for March 2010, June 2010, December 2010, March 2012 and September 2012 contracts respectively.
The five contract months settled the day at 97.88, 97.51, 97.09, 95.98 and 95.92 respectively.
The market also recorded two strip trades of 200 lots each for March 2013 and December 2013 respectively, and 400 lots each for June 2013 and September 2013.
March 2013, June 2013, September 2013 and December 2013 contracts settled at 95.46, 95.14, 94.84 and 94.74 respectively.
Total volume for the day stood at 1,250 lots, up from 120 lots last Friday while open interests added to 40,164 contracts from 40,154 contracts previously.
At 11am fixing yesterday, the underlying KLIBOR stood flat at 2.11 per cent.
As for the five-year Malaysian Government Securities (MGS), no trading was recorded throughout the day.
June 2009, September 2009, December 2009 and March 2010 contracts remained at their last settlement prices of 113.43, 112.89, 112.16, and 111.19 respectively. — BERNAMA
