economies

 
 

Occidental challenges Chevron with higher US57b bid for Anadarko

NEW YORK, April 25 — Occidental Petroleum launched a campaign yesterday to buy Anadarko Petroleum in a hostile takeover, challenging Chevron's proposed acquisition in a battle over key US shale assets. Shares of Anadarko surged, while Chevron and…


Ringgit will stabilise after recent sell-off, says FXTM analyst

KUALA LUMPUR: The ringgit is expected to trade within the 4.10-4.15 range against the US dollar in the second quarter as the sell-off pressure eases, barring any major catalyst, according to FXTM market analyst Han Tan (pix).

The ringgit weakened 0.06% to 4.1305 against the greenback today from 4.1280 on Tuesday.

The recent selling pressure in the ringgit was triggered by news of the Norwegian sovereign wealth fund cutting its exposure in the emerging markets, including Malaysia. This was aggravated by the speculation that Malaysian bonds would be dropped from the FTSE World Government Bond Index.

Tan said the market is currently focused more on external factors, letting external risk to dictate the performance of currencies and paying less attention to internal economic data.

According to the International Monetary Fund’s Purchasing Power Parity metrics, the ringgit is undervalued by 65% to the greenback.

Tan expects the Malaysian currency to remain supported by the country’s resilient economic fundamentals, whereby the projected gross domestic product growth of 4.3-4.8% this year is better than many other economies.

“Malaysia’s export mix is very well diversified and with this very diversified nature, is not just limited to export, it has multiple legs to stand on.”

To illustrate the influence of external factors, Tan pointed out that Malaysia has been able to buck the Asean trend in regard to exports, delivering a growth while the neighbouring countries are experiencing a contraction in the fourth quarter of 2018 up till February 2019.

“In other words, the currency markets are primarily focused outwards and paying less attention to what is happening onshore,” he said.

While oil prices have reached the US$70 (RM289) per barrel mark this month, the increase has yet to be reflected in the ringgit’s performance.

However, Tan said as Malaysia’s budget is based on the assumption of crude oil at US$70 a barrel, stronger prices will contribute to the ringgit’s strength.

“Barring any major catalyst, I expect oil prices to head towards US$80 per barrel within the first half,” he added.


Ringgit will stabilise after recent sell-off, says FTXM analyst

KUALA LUMPUR: The ringgit is expected to trade within the 4.10-4.15 range against the US dollar in the second quarter as the sell-off pressure eases, barring any major catalyst, according to FXTM market analyst Han Tan (pix).

The ringgit weakened 0.06% to 4.1305 against the greenback today from 4.1280 on Tuesday.

The recent selling pressure in the ringgit was triggered by news of the Norwegian sovereign wealth fund cutting its exposure in the emerging markets, including Malaysia. This was aggravated by the speculation that Malaysian bonds would be dropped from the FTSE World Government Bond Index.

Tan said the market is currently focused more on external factors, letting external risk to dictate the performance of currencies and paying less attention to internal economic data.

According to the International Monetary Fund’s Purchasing Power Parity metrics, the ringgit is undervalued by 65% to the greenback.

Tan expects the Malaysian currency to remain supported by the country’s resilient economic fundamentals, whereby the projected gross domestic product growth of 4.3-4.8% this year is better than many other economies.

“Malaysia’s export mix is very well diversified and with this very diversified nature, is not just limited to export, it has multiple legs to stand on.”

To illustrate the influence of external factors, Tan pointed out that Malaysia has been able to buck the Asean trend in regard to exports, delivering a growth while the neighbouring countries are experiencing a contraction in the fourth quarter of 2018 up till February 2019.

“In other words, the currency markets are primarily focused outwards and paying less attention to what is happening onshore,” he said.

While oil prices have reached the US$70 (RM289) per barrel mark this month, the increase has yet to be reflected in the ringgit’s performance.

However, Tan said as Malaysia’s budget is based on the assumption of crude oil at US$70 a barrel, stronger prices will contribute to the ringgit’s strength.

“Barring any major catalyst, I expect oil prices to head towards US$80 per barrel within the first half,” he added.


Ringgit to trade at 4.10-4.15 to the greenback in Q2

KUALA LUMPUR, April 24 — The ringgit is expected to trade range-bound within the 4.10 and 4.15 band against the US dollar in the second quarter of 2019 (Q2 2019), barring any major catalyst. FXTM market analyst Han Tan said the outlook was on the…


US dollar hovers near 22-month peak buoyed by strong data

TOKYO, April 24 — The US dollar hovered near a 22-month high against its peers today, after strong US housing data further eased concerns of a slowdown in the world's biggest economy. The US dollar index versus a basket of six major currencies…


Top US officials to hold trade talks in China next week

WASHINGTON, April 24 — US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will travel to Beijing for trade talks beginning on April 30, the White House said in a statement yesterday. It said Chinese Vice Premier Liu…


Japan expects limited impact from US move to scrap Iran oil sanction waivers

TOKYO, April 23 — Japan expects a limited impact from the US decision not to renew waivers it had previously granted on Iran oil import sanctions, trade and industry minister Hiroshige Seko said today. The United States yesterday demanded all…


Asian shares steady after Easter weekend, oil hits 2019 highs

TOKYO, April 23 — Asian shares were little changed today, hovering not far from nine-month peaks hit last week, with concerns China may slow the pace of policy easing curbing the market's enthusiasm. MSCI's broadest index of Asia-Pacific shares…


US dollar slips in holiday-thinned trade as loonie, ruble ride oil gains

NEW YORK, April 22 — The US dollar edged lower against a basket of currencies in thin holiday-impacted trading yesterday, while a jump in the price of oil on news Washington plans to tighten a clampdown on Iranian oil exports in May boosted the…


FXTM: Ringgit’s weakness against US dollar is transitory

PETALING JAYA: The ringgit’s recent decline against the US dollar is expected to be transitory, despite the currency’s exposure to external factors, said FXTM market analyst Han Tan.

“The Malaysian currency remains exposed to broader risk sentiment driven by external factors such as trade tensions between major economies and slowing global economy. However, the ringgit’s recent decline against the US dollar is expected to be transitory, as Malaysia’s robust fundamentals continue supporting the ringgit,” he said in a commentary today.

He said Malaysia’s March inflation data, which is due on Wednesday, will show whether prices have rebounded from the deflation recorded in the first two months of the year, where a meaningful return to inflationary territory could offset the ringgit’s weakness against the US dollar.

“Overall, we expect Malaysia’s price pressures to remain manageable throughout 2019, allowing domestic consumption to continue driving growth,” he added.

He said the selling momentum on the ringgit of late is likely to subside in the week ahead while major economic releases out of the US and China, as well as potential headline risks, could also lead to short-term movements for USD/MYR within the 4.10-4.15 range.

Next week, global investors will turn their attentions towards the first quarter US gross domestic product (GDP) due on Friday, April 26.

Tan noted that growth forecasts have been revised upwards following February’s trade deficit which surprised markets when it fell to an eight-month low.

“A GDP print that exceeds market expectations above the 2% mark could give the Greenback an immediate leg up, while potentially offering further relief over the broader global outlook,” he said.