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Ringgit retreats from 10-week high after Turkey's failed coup

Monday, July 18, 2016 - 09:45
35818723 - 24_08_2015 - pixringgit.jpg
Malaysia's ringgit retreated from a 10-week high after Turkey's failed coup and better-than-expected US retail sales numbers bolstered demand for the dollar.

[KUALA LUMPUR] Malaysia's ringgit retreated from a 10-week high after Turkey's failed coup and better-than-expected US retail sales numbers bolstered demand for the dollar.

The currency declined 0.8 per cent to 3.9790 per dollar as of 8.20am in Kuala Lumpur, the biggest drop since June 24, according to prices from local banks compiled by Bloomberg. It climbed on Friday to the strongest level since May 4 as bonds rallied.

The Bloomberg Dollar Spot Index extended gains on Monday after rising 0.4 per cent on Friday. US sales increased 0.6 per cent in June from a month earlier, more than the median estimate for a 0.1 per cent rise in a Bloomberg survey.

"We're seeing Asian currencies weaker because of the dollar," said Irene Cheung, a foreign-exchange strategist in Singapore at Australia & New Zealand Banking Group.

"The market has priced in slightly more for the rate hike next year in response to the numbers that we saw last Friday. I'm not sure whether the Turkey situation has really stabilised and if there's any concern, it should be good for the dollar."

BLOOMBERG

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