Hot Ringgit Trade Gets Another Boost From Foreign Bond Flows.

Foreign investors have been pouring money into Malaysian bonds, attracted by the rally in the Malaysian ringgit. In July, there was a record monthly inflow of 5.5 billion ringgit ($1.2 billion) into Malaysian bonds. The ringgit's recent surge has resulted in total returns on ringgit notes reaching 5.9% this year, one of the highest in emerging markets. This influx of foreign funds is partly due to expectations of ringgit strength and confidence in Malaysia's improving economic outlook. Additionally, the rush to Malaysian debt securities is aided by light foreign positioning ahead of expected interest rate cuts by the US Federal Reserve. [Extracted from the article]