Malaysian Ringgit Rallies on Hopes Elections Will Stop Capital Outflows
The Malaysian ringgit gained today as Prime Minister Najib Razak dissolved the parliament and announced the national elections. Investors think that outflows from the country will reverse after the vote.
It is expected that voting will go in favor of the incumbent Prime Minister, allowing him to extend his term in the office. The ringgit has fallen to 3.1395, the lowest level in seven months, on March 18 on uncertainty about the exact timing of elections and concerns that support for Razak would wane. Analysts expect that capital inflows will resume after the vote will be conducted.
USD/MYR fell from 3.0815 to 3.0642 as of 12:21 GMT today.
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Earlier News About the Malaysian Ringgit:
- Ringgit Gains, Still Heads to Weekly Loss (2013-02-22)
- Ringgit Falls on Concern over Currency War (2013-01-25)
- Malaysian Ringgit Gets Boost from Global Growth (2013-01-18)
- Ringgit Lifted Along with Market Sentiment by Talks Among US Politicians (2012-12-31)
- Ringgit Retreats as US Fiscal Cliff Spooks Investors (2012-12-24)