KUALA LUMPUR: Demand and supply imbalances in the domestic foreign exchange market intensified the pressure on the ringgit’s decline, said Bank Negara Malaysia Governor Datuk Muhammad Ibrahim. “Hence, when the demand for the currency falls, the currency will consequently depreciate,” he said when outlining reasons for the ringgit’s decline. The bank’s proactive steps had helped subside the disruptive influence of speculative activities on the ringgit in the offshore market, he said. “In addition, imbalances in the domestic foreign exchange market have improved while the ringgit’s volatility has also reduced,” he said. The governor also revealed that legal action was taken on several foreign banks that were severely fined for being involved in manipulative price fixing.-- BERNAMA

Source: New Strait Times January 16, 2017 07:24 UTC