Ringgit opens higher post FOMC

KUALA LUMPUR, July 27: The ringgit opened higher against the US dollar this morning on improved demand supported by firmer oil prices and weakening US dollar.

At 9 am, the local unit stood at 4.2740/2770 against the greenback compared with Wednesday’s close of  4.2825/2865.

The benchmark Brent crude were traded around US$50.83 per barrel.

“A rally in oil prices -over the long-term should provide positive sentiment for the ringgit,” said OANDA Senior Trader Stephen Innes.

Besides,, talks on positive inflows due to infrastructure projects associated with China’s ‘One Belt One Road’ initiative was also supporting the ringgit.

Innes added that Bank Negara Malaysia’s move to further liberalise its currency policy brought cheer to investors.

Meanwhile, the US dollar fell after the US Federal Reserve ‘s Open Market Committee announced no changes to monetary policy.

 

Bernama

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

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