Ringgit Rises on Easing Speculations

The Malaysian ringgit rose today on speculations that central banks of developed nations would ease their monetary policies to cope with economic slowdown.

Many analysts expect that the chief of the European Central Bank, who promised yesterday to support the euro, would lower interest rates on the next policy meeting. The Federal Reserve will announce its monetary decision August 1 and the recent stream of poor fundamental data suggests that easing may be appropriate. And, of course, there is the Bank of Japan, which is constantly trying to weaken the ever-strong yen.

USD/MYR was down from 3.1645 to 3.1605 as of 8:49 GMT today.

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