EM ASIA FX-Asia currencies lose momentum

The ringgit rose as much as 4.1000 per dollar, its strongest since Sept. 22, as traders cut bearish bets on the oil rebound.

The Malaysian currency closely tracks crude prices due to the country’s reliance on oil and gas exports.

The ringgit pared some of its earlier gains due to a lack of detail on the OPEC agreement. “Oil should stay supportive short term, but until there is a convincing break above $50 per barrel, the USD/MYR will continue to be supported on dips,” said Stephen Innes, senior FX trader for FX broker OANDA in Singapore. Brent crude eased to $48.61 a barrel in early afternoon trade in Asia.

The ringgit is also seen having chart resistance around the session high, said a senior Malaysian bank trader in Kuala Lumpur.

Reuters

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Senior Currency Trader and Analyst at OANDA
Stephen has over 25 years of experience in the financial markets and specializes in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is currently based in Singapore as a Senior Currency Trader and Analyst with OANDA, focusing on the movement of the Aussie Dollar and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Prior to joining OANDA, he worked with organizations like Cambridge Mercantile, Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

Latest posts by Stephen Innes (see all)