KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
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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