China’s PMI supported views that the Chinese economy would not suffer a hard landing as earlier feared. Moreover, they said, favorable economic developments in China would boost exports of neighboring countries like the ASEAN.
China is one of the biggest export markets of the ASEAN.
Concerns have been lingering over the budget problems of the US government, which has been scheduled to implement higher taxes and spending cuts at the onset of 2013 unless legislators could do something to avert those. Economists said higher taxes and spending cuts might help address fiscal woes of the US government but could also dampen the still weak growth of the US economy.
The peso moved sideways as investors weighed reports about a pickup in manufacturing in China and lingering concerns about budget problems of the US government.
The local currency closed at 40.88 against the US dollar, up by 2 centavos from Friday’s finish of 40.90:$1.
Intraday high hit 40.85:$1, while intraday low settled at 40.905:$1.
Volume of trade amounted to $632.802 million from $968.786 million previously.
Malaysia ringgit was traded lower against other major currencies.
It depreciated against the Singapore dollar to 2.4912/4945 from last Friday’s 2.4891/4910 close and fell against the Japanese yen to 3.7015/7048 from 3.6761/6801.
The local unit decreased against the British pound at 4.8795/8842 from 4.8764/4797 last week and declined against the Euro to 3.9622/9654 from 3.9547/9569 previously.
The Thai Baht has maintained its mid-range and looks set to do so for the rest of the week.
The Singapore Dollar is still a buy despite Singapore expecting economic growth to slow to 2 to 3%
Singapore Prime Minister Lee Hsien Loong has said that the government is no longer aiming for ” ridiculously high” economic growth like those seen in the past years, but rather a more sustainable rate of about 2 to 3% per year, local media reported Monday.
Lee said at a conference of the ruling People’s Action Party that Singapore’s growth rate used to be 7 to 8% per year, and 5% on average over the last decade.
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