Malaysia’s Oil Shields Ringgit as Rupiah Exposed
Bareksa • 24 Jun 2014
Malaysian ringgit notes are seen among other currency notes in this file photo illustration taken in Singapore on March 14, 2013 - (The Jakarta Globe/Edgar Su)
Indonesia’s benchmark interest rate is 7.5 percent, while the nation’s 10-year government bonds yield 8.16 percent.
Bareksa.com - As quoted from The Jakarta Globe, The ringgit will weather a surge in oil prices better than other Southeast Asian currencies as Malaysia is the region’s sole net exporter of crude, providing support for bonds, BNP Paribas Investment Partners says.
Options traders are the least pessimistic on the ringgit’s outlook, while the currencies of net oil importers such as Indonesia and Thailand are viewed as the most vulnerable, data compiled by Bloomberg show. Crude climbed last week to the highest level since September, driven by concern escalating violence in Iraq will disrupt world supply, and Malaysian bonds outperformed the rest of the region over the past month.