Analysts say NDF market not to blame for ringgit's weakness

Kuala Lumpur

RISING oil prices provided the Malaysian ringgit some respite on Tuesday after nine consecutive days on a downtrend, but analysts caution the real issues affecting the currency need to be addressed for longer-term stability.

Ringgit NDF (non deliverable forward) trades offshore have been blamed for the increased volatility in the currency which is now a hefty 5.23 per cent less compared to 10 days ago, prompting the central bank to ban onshore banks from participating in the NDF market as it believes speculators are shorting the ringgit, as well as fixing rates based on offshore quotes.

Notwithstanding Brent crude oil's climb to US$49 a barrel as investors bet on the Organization of the Petroluem Exporting Countries (Opec) agreeing to oil production curbs when it meets later in the month, ana…