# Jittery ringgit spurs options growth in Malaysia - FX Markets

> 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.

- Date: 2020-06-18 · published 2020-06-18T12:00:00.000Z
- Category: macro · region Malaysia · magnitude low
- Page: https://feedsoft.ai/events/52885-jittery-ringgit-spurs-options-growth-in-malaysia-fx-markets
- Commodities: [Malaysian Ringgit (MYR per USD)](https://feedsoft.ai/c/USDMYR.md)

## Why it matters

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.

## Read by commodity

- USDMYR: neutral

## Sources

- fx-markets.com: https://www.fx-markets.com/regulation/7561591/jittery-ringgit-spurs-options-growth-in-malaysia

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.