KUALA LUMPUR, Jan 7 (Bernama) -- Bursa Malaysia’s benchmark index rebounded from earlier losses to close at its intraday high on Wednesday, gaining 0.27 per cent in late trading as buying interest returned to selected heavyweights. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 4.48 points to 1,676.83 from Tuesday’s close of 1,672.35. The benchmark index opened 0.88 of-a-point lower at 1,671.47 and subsequently hit a low of 1,665.94 during the mid-morning session before gaining momentum toward closing. On the broader market, losers led gainers by 565 to 512, while some 526 counters were unchanged, 1,046 untraded, and 10 suspended. Turnover improved to 2.73 billion units worth RM2.76 billion versus Tuesday’s 2.66 billion units worth RM2.76 billion. Dealers said that investors were cautious following geopolitical developments in Asia.
China’s central bank moved to shore up the yuan on Thursday, setting its daily reference rate well below analyst forecasts after the currency slid to a two-month low against the U.S. dollar.
Key Points:
Stronger Fixing: The People’s Bank of China (PBOC) set the yuan’s reference rate around 7.15 per dollar, the biggest divergence from market estimates since April.
Market Reaction: The offshore yuan rebounded 0.2% to 7.1993, after touching its weakest level since early June.
Dollar Surge: The move came as the U.S. dollar hit a two-month high, driven by stronger U.S. trade deals and Fed Chair Jerome Powell’s hawkish comments on interest rates.
Regional Moves:
Monetary authorities in Indonesia and Hong Kong also intervened to defend their currencies as the greenback’s rally pressured Asian FX markets.
The yuan and Singapore dollar remained relatively resilient compared to other regional peers.
Why It Matters:
The PBOC is balancing currency stability while avoiding sharp depreciation during ongoing trade negotiations with the U.S.
Hedge funds had bet on a stronger yuan earlier this month, with some forecasts calling for 7.1 or lower, but the dollar’s resurgence has forced traders to unwind positions.
Bottom Line: The PBOC’s stronger-than-expected fixing highlights Beijing’s intent to prevent excessive yuan volatility as trade tensions and a firmer U.S. dollar test Asian currency markets.
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