Economics
Ringgit Is Best Carry Bet Amid Rate-Rise Outlook: Asean Credit
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The odds that Malaysia’s central bank will increase borrowing costs at least once more this year are providing Asia’s best carry-trade returns in the ringgit.
Trades in which investors borrow in a country with low interest rates and park funds elsewhere seeking higher yields climbed 2.8 percent in Malaysia in the past three months, exceeding the 2 percent gain for the Philippine peso and 1.6 percent for China’s yuan, data compiled by Bloomberg show. Barclays Plc and Bank of America Merrill Lynch are predicting one more rate rise this year of 25 basis points.