Published: 2009/05/27
THE ringgit gained after the central bank said the economy may see “gradual improvement” as a global recession eases. The currency snapped a two-day slide after Bank Negara Malaysia late yesterday kept its overnight rate at a record-low 2 per cent, saying low borrowing costs and US$19.2 billion of additional government spending will be sufficient to spur domestic demand as exports slump.
The central bank will report first-quarter gross domestic product after 6 pm today. “There’s better optimism about the second-half outlook, which should underpin demand for risky assets,” said Wan Murezani Mohamad, an analyst at Malaysian Rating Corp in Kuala Lumpur.
“Recovery signs remain fragile and what’s been supporting the ringgit is the rally in equities.”
The ringgit rose 0.3 per cent to 3.5040 per dollar as of 4:55 pm in Kuala Lumpur, according to data compiled by Bloomberg. The currency reached 3.4685 on May 22, the strongest since January 5. -- Bloomberg