KUALA LUMPUR Aug 27 Malaysia's resilient
domestic demand shows interest rates are supporting economic
activity, and the central bank is not targeting a specific level
for the exchange rate, Governor Zeti Akhtar Aziz said on
"Interest rates are supportive of the economy. Domestic
demand has been strong, so there is still support," the central
bank governor told reporters in the Malaysian capital.
Malaysia has kept rates steady at 3 percent since May 2011
as the trade-dependent country seeks to boost domestic
consumption to counter weakness in its major export markets for
commodities and electronics.
Zeti said the central bank has consistently asked exporters
not to rely on the exchange rate to shore up incomes, but to
look at boosting productivity.
"From time to time, we will see ringgit strengthen because
of shifts in liquidity, other times we will see reversals," she
"What we focus on is an orderly financial market. We don't
focus on any specific level for the ringgit," Zeti added.
The ringgit has fallen nearly nine percent against
the dollar this year, with regional currencies hit by worries
about funds leaving Southeast Asia ahead of an expected start of
a moderation of U.S. monetary stimulus.
(Reporting By Anuradha Raghu; writing by Niluksi Koswanage;
Editing by John Mair)