The Malaysian onshore financial markets activities continue to operate effectively during the first week after the general election. The market recorded a healthy daily average FX transaction volume of USD15 billion. The USD/MYR 1-month implied volatility declined to an average of 5.6% for the week compared to a high of 5.9% pre-election, signalling continued investors’ confidence in the Malaysian markets. For the week, Ringgit traded range-bound within 3.94 to 3.98 level, consistent with the performance and expectations of the regional currencies.

The government bond market remains supported by domestic institutional investors. The yields of 5 and 10-year benchmark Malaysian Government Securities traded up to 10 basis points to record 3.89% and 4.18% respectively in line with the rise in US Treasury yields. The overall secondary bond market recorded a healthy daily average trading volume of RM4.4 billion month-to-date in May compared to RM3.4 billion on average for January to 18 May 2018.

The market mechanism continues to work effectively with ample liquidity to support market transactions. Bank Negara Malaysia will continue to monitor market developments and will ensure that all business and transaction needs are met by the financial markets.

Financial Markets Committee
18 May 2018

About The Financial Markets Committee (FMC)

The FMC is a committee established by BNM in May 2016 and comprises representatives from Bank Negara Malaysia, financial institutions, corporations, financial service providers and other institutions which have prominent role or participation in the financial markets.