Malaysia ringgit hits 3-yr low against US$ on outflows, then rebounds on debt sale
REUTERS - The Malaysian ringgit hit a fresh three-year low early Tuesday due to redemption of maturing bonds, but it turned higher on strong demand for new government bonds, which should help the currency strengthen further.
Early in the day, the ringgit lost 0.3 per cent to 3.2365 per United States dollar, its weakest since July 1, 2010, pressured by bond outflows. The local currency touched 2.5520 to the Singapore dollar, the weakest since July 1998.
Pushing down the ringgit were concerns on outflows, as 9.2 billion ringgit (S$3.6 billion) worth of government bonds are due on Wednesday, according to central bank data.
However, the Malaysian currency turned slightly higher, as agent banks of the central bank were spotted selling dollars and some investors covered short positions, traders said.