Ringgit Appreciates 3.6 Pct In Q415 Despite Challenging Environment

KUALA LUMPUR, Feb 18 (Bernama) -- The ringgit appreciated 3.6 per cent against the US dollar during the fourth quarter (Q4) of 2015 and despite the challenging economic environment during the period, said Malaysia's Central Bank (Bank Negara Malaysia). The ringgit also appreciated against the euro (6.7 per cent), the pound sterling (6.0 per cent), and the Japanese yen (4.0 per cent). However, the local note depreciated against the Australian dollar by 0.5 per cent. Against all regional currencies, the ringgit also appreciated by between 2.4 per cent and 5.8 per cent, with the exception of the Indonesian rupiah in falling by 2.4 per cent. "The ringgit, along with other regional currencies, did not face significant volatility during the quarter despite uncertainties over global growth prospects and declining global energy prices," the central bank said in a statement on Malaysia's performance during the quarter under review. Between Jan 1 and Feb 16, 2016, Bank Negara said the ringgit appreciated by 3.5 per cent against the US dollar. It also appreciated vis-a-vis the pound sterling (6.3 per cent), the Australian dollar (5.4 per cent), and the euro (1.4 per cent), but depreciated against the Japanese yen (-1.3 per cent). The ringgit appreciated versus most regional currencies. During the Q415, Malaysia's gross domestic product (GDP) grew by 4.5 per cent as compared to 4.7 per cent in the third quarter 2015, bringing the total expansion to 5.0 per cent in the economy for the year. Bank Negara said the Malaysian financial system remained resilient and well-capitalised throughout the quarter and despite the environment of heightened market volatility amid uncertainties in global growth as well as energy prices. Domestic financial intermediation continued to be well-supported by sound and well-capitalised financial institutions. "Liquidity in the banking system remained ample despite occasional tight funding conditions. "While investors' take a cautious approach in the period ahead, domestic financial system stability is expected to be maintained," BNM said. It also said the deep and well-developed domestic financial market continued to support orderly market conditions and sustained confidence in the financial system. -- BERNAMA