KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
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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