BENGALURU: Malaysia’s ringgit strengthened to its highest in more than a year on Wednesday, underpinned by an upbeat economic growth outlook, while emerging Asian equities extended gains on hopes that the US Congress is close to ending the federal shutdown.
The ringgit rose as much as 0.3 percent against the US dollar to 4.118, its highest level since September 30 last year.
The currency is heading for a seven-day winning streak, its longest since early August last year, and remains the region’s top performer this year with an 8 percent gain.
The recent conclusion of a trade deal with the US and implementation of structural and fiscal reforms are helping the ringgit, said Michael Wan, MUFG’s senior currency analyst.
Strong bond inflows backed by a robust economic growth outlook are also propping up the currency, Maybank analysts said in a note.
A Reuters poll showed that Malaysia’s economy expanded at its quickest pace in a year during the third quarter, supported by a rebound in key sectors and resilient household spending.
Elsewhere, the South Korean won weakened as much as 0.5 percent on the day, to 1,470 against the US dollar, its lowest since early April.
South Korean President Lee Jae Myung directed officials on Tuesday to prepare tax incentives for long-term stock investors, according to reports, sending the benchmark equity index up 1.2 percent on Wednesday.
Regional equities were broadly lifted by optimism over the reopening of the US government.
However, the MSCI gauge of EM Asia equities, in which South Korea and Taiwan account for around 40 percent of the index, gave up earlier gains to edge lower.
Taiwan’s benchmark stock gauge pared earlier gains to advance around 0.6 percent, with TSMC up 1.4 percent.
Singapore’s FTSE Straits Times index scaled a fresh high of 4,566.54 points, led by lenders OCBC and United Overseas Bank.
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