Ringgit intervention speculation by Bank Negara

From the Business Times:

The ringgit headed for the biggest gain in more than a week as some traders said Asian central banks in the region entered the market to defend their currencies. The weaker exchange rate isn’t unique to Malaysia and reflected the strength of the US currency, Bank Negara Malaysia Governor Zeti Akhtar Aziz said in Kuala Lumpur today.

Bank Negara Malaysia intervened in the foreign-exchange market to ensure orderly market conditions, Zeti said in August last year. Such actions were not meant to affect its underlying trend, she said. She didn’t comment on intervention measures today.

Malaysia’s central bank has spent US$34.5 billion of its reserves to support the ringgit, causing a 27 per cent drop in the holdings since the end of June, HSBC Holdings Plc estimated in a report on Feb 18. In percentage terms, Malaysia was the most aggressive among Asian central banks in defending its currency, it said. - Bloomberg

Zeti says that currency intervention was not made to affect underlying trend while the data shows they are considered one of the most aggressive in defending their currency in Asia. Retardedness! Who are they fooling? They just keep throwing good money after bad.