Ringgit Rally To Prove Short-Lived
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Malaysia's new Finance Minister Najib Razak has doused the flames of speculation surrounding a move to re-peg the country's ringgit currency to the dollar, categorically stating that the authorities 'have no intention to re-peg the ringgit now or in the future'. Speculation that the ringgit may soon be revalued by as much as 10% - as suggested by former premier Mahathir Mohamad on 21 September in order to deal with the effects of the US-induced financial crisis - saw traders and speculators rush to cover short positions on September 22, pushing the unit to a two-week high. However, after Najib and central bank governor Zeti Akhtar Aziz both issued statements denying the rumours, it appears that an extended rally for the beleaguered currency seems unlikely.