While the Bank of Korea has little scope to hike interest rates to defend the won at its meeting this week, investors trading on technical levels in the foreign-exchange market may help arrest the currency’s decline.
While a falling currency could boost exports, central banks are signaling their goal now is to stem investor flight.
The ringgit is expected to remain weak although further downside risks could be limited as the currency is already at an oversold position.
MIDF research sites Norway's sovereign wealth fund's decision to reduce exposure to emerging markets, and the possible downgrade of the Malaysian bond market by FTSE Russell.
Turkey’s central bank began last month borrowing excess foreign currency from commercial lenders through FX swap auctions, lending the banks liras in return.
Foreign investors have been reducing their Malaysian government bond positions since late 2016 and held about US$37 billion of the securities as of March.
The US dollar lacked momentum, with its index against six other currencies hovering near a two-week low.
The local unit trades at 4.0900/0950 against the greenback from Friday’s close of 4.0870/0900.
The local unit trades at 4.0800/0850 against the greenback from 4.0810/0840 at yesterday's close.
The local unit trades at 4.0770/0820 against the greenback from 4.0770/0810 at yesterday's close.
The local unit trades at 4.0800/0830 against the greenback from 4.0830/0870 at yesterday's close.
The local unit trades at 4.0820/0870 against the US dollar from 4.0790/0820 on Monday's closing.
The local unit trades at 4.0750/0800 against the US dollar from 4.0800/0850 last Friday.
The local unit trades at 4.0770/0820 against the greenback from 4.0760/0800 recorded yesterday.
The local currency trades at 4.0750/0830 compared with yesterday’s close of 4.0700/0750.
The euro fell as low as 85.25 pence on hopes of an orderly departure from the European Union on April 12.
The local currency trades at 4.0640/0680 compared with yesterday’s close of 4.0670/0700.
The local currency trades at 4.0650/0750 compared with Friday’s close of 4.0600/0650.
Pressure on the sterling should ease as the political outcomes seen as most likely in the next week will cut the odds of Britain crashing of the EU without a deal this month.
While the political situation is extremely fluid, dealers say investors are assuming the votes make a 'no deal' Brexit less likely and that is cause for relief.
The ringgit stands at 4.0800/0850 against the greenback from 4.0820/0860 at the close yesterday.
The ringgit stands at 4.0780/0820 against the greenback from 4.0870/0920 on Monday.
Sterling climbs as much as 1.1% in Asia-Pacific trading after climbing more than 1% the previous day amid optimism over Brexit.
The ringgit stands at 4.0860/0930 against the greenback from 4.0890/0930 at last Friday’s close.