Turkish annual inflation falls in November from 15-year peak

ISTANBUL, Dec 3 — Turkey’s consumer price index fell 1.44 per cent month-on-month in November, official data showed today, bringing the annual inflation rate down from a 15-year high as a stronger lira, tax cuts and discounted products helped to…

Russia’s Gazprom says offshore part of TurkStream is complete

ISTANBUL, Nov 19 — Construction of the offshore part of the TurkStream pipeline that will carry Russian gas across the Black Sea to Turkey has been completed, Russian gas producer Gazprom said today. TurkStream is part of Moscow’s efforts to…

Emerging currencies slide on higher oil, strong dollar

BEIJING, Nov 12 — Emerging market stocks and currencies fell today, pressured by a strong dollar and rising oil prices with net crude importers bearing the brunt. The MSCI index of emerging market currencies fell 0.3 per cent as the dollar built…

Emerging market shares and currencies gain after US midterm results as dollar eases

NEW YORK, Nov 7 ― Emerging stock and currency markets inched higher today as investors took a positive view of US midterm elections that gave Democrats the ability to thwart President Donald Trump but left Republicans firmly in charge of the…

Turkey says it will not abide by renewed sanctions on Iran

ANKARA, Nov 7 — President Tayyip Erdogan said yesterday Turkey would not abide by the renewed US sanctions on Iran's oil and shipping industries as they were aimed at “unbalancing the world.” Washington reimposed the sanctions on Monday,…

As US oil sanctions against Iran start, Washington grants waivers to major buyers

SEOUL, Nov 5 — The United States reintroduced sanctions against Iranian oil today while giving some of Washington’s closest allies exemptions that allow Tehran’s biggest customers, mostly in Asia, to keep buying crude for now. Washington has…

Erdogan says Turkey discussing Halkbank with US after Trump call

ISTANBUL, Nov 4 — President Tayyip Erdogan said yesterday he and President Donald Trump had discussed Turkey’s Halkbank, which faces potential US fines after an executive was convicted of taking part in a scheme to help Iran evade US sanctions….

China stimulus drives third day of emerging-market gains

BEIJING, Nov 1 — Emerging-market stocks rose for a third day today, as Beijing’s plan to boost infrastructure spending and a tepid dollar helped the mood after a bruising month for equities globally. The MSCI index of developing-world stocks…

Turkey president opens new Istanbul Airport

ISTANBUL: Turkish President Recep Tayyip Erdogan on Monday opened Istanbul’s new international airport, which his government says will eventually become the world’s largest, with great fanfare. “The new airport will be the pride of our country and an example to the world,” Erdogan said at a lavish opening ceremony featuring several heads of state. At […]

Ringgit displays resilience amid volatile conditions

PETALING JAYA: The ringgit has performed with resilience in a highly volatile October despite an overwhelming number of emerging market currencies facing weakness due to continued global stock market volatility and external uncertainties.

FXTM global head of currency strategy and market research Jameel Ahmad said stronger fiscal finances compared to other emerging markets, a relatively strong economy at a time of multiple external uncertainties and US interest rate expectations being priced in to a large degree are a few of the different reasons behind why the ringgit is performing more resilient than its emerging market counterparts.

At the time of writing, he said only four emerging market currencies have strengthened against the US dollar in October, which are the Argentine peso, Turkish lira, Brazilian real and Philippine peso.

“By comparison, the ringgit performed very well and has only weakened by 1.03% at time of writing. This actually means that the ringgit is the seventh best performing emerging market currency out of the 24 ranked in the Bloomberg terminal.”

He pointed out that the reasons for weakness in the ringgit are not isolated to Malaysia, and are very common across emerging markets globally. Investors are concerned about a number of different global market uncertainties, including stock market pressures, political risks and geopolitical tensions that are all combining to reduce the overall investor appetite to take on risk in their portfolios.

“This means they are not attracted to emerging market assets, which is also why the ringgit has performed on a slight negative note in October.

“If you look at the larger picture and compare the performance of the ringgit against other emerging market currencies you will see that the ringgit actually performed with resilience this month,” explained Jameel.

He highlighted that the losses in the ringgit are a distance away from the losses seen in regional counterparts, and a very long distance away from the 3.2% losses in the South African rand and above 6% in both the Mexican peso and Colombian peso.

Today, the local note closed marginally lower to 4.18 against a strengthening dollar.