Malaysia’s ringgit completed a third weekly advance in four as stocks rebounded on stronger U.S. data and optimism efforts to stem Europe’s debt crisis may work. The currency recovered from its weakest level since June as data released yesterday showed U.S. jobless claims unexpectedly fell to a four-month low. France, Spain, Italy and Belgium imposed bans on short-selling from today to stabilize financial markets, according to the European Securities and Markets Authority. Malaysian government bonds slipped after demand weakened at a debt auction. “The U.S. data offers some breathing space for Asian currencies in a week that’s rooted in fear,” said Choong Yin Pheng, manager for economic and bond research at Hong Leong Bank Bhd. in Kuala Lumpur. “Market sentiment remains fragile and this calm may be only temporary.” The ringgit strengthened 0.4 percent this week to 3.0033 per dollar as of 4 p.m. in Kuala Lumpur, according to data compiled by Bloomberg. It was little changed today and traded as low as 3.0483 on Aug. 9, the weakest level since June 29. The FTSE Bursa Malaysia KLCI Index of local shares climbed 0.7 percent today, the most in three months. The number of applications for unemployment insurance payments in the U.S. fell to 395,000 in the week to Aug. 5, the fewest since early April, the Labor Department said yesterday. A Commerce Department report today may show retail sales climbed 0.5 percent in July, after a 0.1 percent gain in June, according to a Bloomberg News survey. Bonds Decline Five-year notes dropped for a second day in Kuala Lumpur, pushing yields up from the lowest level this year. The treasury sold an additional 3 billion ringgit ($1 billion) of bonds maturing in April 2026 today at an average yield of 3.916 percent. The bid to cover ratio fell to 1.87 times, compared with 2.3 times at the first sale of the notes in April, the central bank said. The yield on the 4.262 percent bond due September 2016 rose one basis point, or 0.01 percentage point, to 3.39 percent, according to Bursa Malaysia. The rate has declined 18 basis points this month. To contact the reporter on this story: David Yong in Singapore at dyong@bloomberg.net To contact the editor responsible for this story: James Regan at jregan19@bloomberg.net

Source