Ringgit Jumps With Stocks After PM Najib’s Election Victory

Malaysia's ringgit climbed the most in almost three years and stocks surged after Prime Minister Najib Razak won a clear majority in a general election, giving him a mandate to continue his economic reforms.

The currency appreciated 1.6 percent to 2.9865 per dollar as of 9:01 a.m. in Kuala Lumpur, the strongest level since Sept. 9, 2011. It was poised for the biggest one-day jump since June 2010, according to data compiled by Bloomberg. Three-month non- deliverable forwards rose 1.6 percent to 2.9992. The FTSE Bursa Malaysia KLCI Index rallied 6.3 percent.

Malaysian ringgit banknotes issued by Bank Negara Malaysia are arranged for a photograph in Kuala Lumpur.

“It’s a relief rally with Najib’s election victory,” Wong Chee Seng, a currency strategist in Kuala Lumpur at Ambank Group said in a phone interview. “The market was a little too negative going into the polls and that risk premium is being removed.”