KUCHING: When it comes to the palm oil sector, like most traded commodities, ‘smooth sailing’ is something rarely mentioned by experts of the field in regards to the prospects of this industry. Palm oil experts are generally painting a good short-term outlook for the sector in 2018 – but palm industry players are more sceptical […]
Malaysian palm oil futures continued to trade down further, due to the strengthening ringgit, the tropical oil currency and concern from European Union (EU) on banning the use of palm oil in biofuels. The benchmark crude palm oil futures (FCPO) contract fell 2.79 per cent to RM2,474 on Friday, which is RM45 lower than RM2,545 […]
Sabah & Sarawak Wood-based manufacturers’ earnings prospects to face challenges in 2018 Wood-based manufacturers’ earnings prospects are projected by analysts to face some challenges in 2018. The research arm of Hong Leong Investment Bank Bhd believed earnings prospects of the wood-based manufacturing players will face some challenges in 2018, underpinned mainly by the sharp strengthening […]
WASHINGTON: A possible shutdown of the US federal government at midnight Friday amid a congressional deadlock on spending would have no immediate effect on America's sovereign debt rating, ratings agency Fitch said.
The prospect of a partial shutdown of US government operations, the first in more than four years, grew increasingly likely on Friday afternoon as Senate Republicans and Democrats remained at loggerheads over legislation to authorize funding to keep the government open.
In a statement on Friday, Fitch said partial shutdowns had occurred in the past and the one looming at midnight on Friday “does not have a direct impact” on the top-notch AAA/stable rating for US sovereign debt.
“Its main implication for the US's sovereign creditworthiness would depend on whether it foreshadowed a further destabilization of US budget policymaking, or brinkmanship over the federal debt limit,” Fitch said.
The agency cited Congressional Budget Office findings, according to which the federal government is not likely to exhaust its borrowing ability until late March or early April.
Markets appeared unconcerned by the possible shutdown on Friday, with Wall Street and the US dollar relatively stable — although US currency has weakened in recent weeks against the euro. — AFP
NEW YORK, Jan 20 — The dollar’s drop to three-year lows this week after prolonged weakness in 2017 is expected to further boost profits at big US companies when investor optimism is already high over corporate tax cuts. Investors are keeping…
NEW YORK, Jan 20 — World equity markets climbed to a record yesterday as the US dollar held near three-year lows and a US government shutdown loomed, while US Treasury yields continued their ascent to hit their highest levels since September…
KUALA LUMPUR, Jan 19 — Malaysian palm oil futures fell for a fourth straight day today, weighed down by a stronger ringgit and concerns over slow exports. A stronger ringgit, palm’s currency of trade, makes the edible oil more expensive for…
KUALA LUMPUR, Jan 19 — The Malaysian currency rose by half a per cent versus the US dollar in trading today, reaching a level not seen in nearly two years. In further signs of the ringgit’s recovery, the local note briefly touched 3.935 to the…
SINGAPORE, Jan 19 — Asian currencies strengthened today as the US dollar languished on fears over a US government shutdown and as China’s strong economic growth figures boosted sentiment in the region. The US dollar index was down 0.165 at…
KUALA LUMPUR: The ringgit rebounded to open higher against the US dollar today on improved demand, said a dealer.
At 9.12am, the ringgit stood at 3.9410/9450 against the greenback from Thursday's close 3.9540/9570.
Oanda Corp Head of Trading for Asia Pacific, Stephen Innes, said the ringgit was not expected to undergo any surprises or significant moves ahead of the weekend, as it has been a pillar of stability this week.
He added that markets were pricing at roughly a 70% interest rate hike probability, which suggested an uptick in volatility early next week ahead of the Monetary Policy Committee meeting on Thursday (Jan 25), which will be a significant influence over the near-term direction.
“All in all, we should expect the ringgit to remain relatively rangebound today unless there is an unexpected shift in the broader US dollar narrative. The ringgit is trading stronger against the US dollar this week,” said Innes in a note today.
Meanwhile, the ringgit traded mostly higher against a basket of major currencies.
It strengthened against the euro to 4.8242/8303 from Thursday's 4.8290/8339 and rose against the Singapore dollar to 2.9838/9875 from 2.9887/9912.
The ringgit appreciated against the yen to 3.5498/5544 from 3.5522/5553, but eased against the British pound to 5.4752/4824 from 5.4731/4777. — Bernama