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Companies in Malaysia are increasingly buying foreign exchange options to hedge ringgit exposure more cheaply. Dealers say this follows a sharp rise in US dollar/ringgit volatility over the past three months.
Hedging activity reflects currency risk for exporters and importers of Malaysian goods, but it does not directly shift commodity supply or demand. The effect on palm oil prices is minimal.
fx-markets.comAlice Shen, Blake Evans-PritchardJun 18, 2020Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
