Ringgit Gains as Investors Bid for Higher Yield

The Malaysian ringgit, together with some other Asian currencies, rose today after comments of German Chancellor Angela Merkel and US Federal Reserve Chairman Ben Bernanke boosted risk appetite among investors yesterday.

Bernanke hinted that the Fed will continue to stimulate the US economy, while Merkel alleviated fears of the economic crisis in the eurozone. The comments made market participants speculate that inflows of foreign funds in Asian countries would increase. Such prospects improved outlook for the Asian currencies that were already doing well as was shown by the Asia Dollar Index that has advanced 1.4 percent this year.

USD/MYR slipped from 3.0824 to 3.0597 as of 12:42 GMT today.

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