The Ringgit Roars

KUALA LUMPUR: The ringgit continued its uptrend to end at a ten-month high of 4.2080/2110 against the US dollar, versus yesterday’s 4.2370/2400 amid encouraging and conducive domestic economic data.

Since the foreign exchange market resumed trading on Tuesday after the long holidays, the local unit has appreciated by 290 basis points.

Bank Negara Malaysia (BNM) has also maintained the Overnight Policy Rate at 3.00 per cent since July 13, 2016 at its Monetary Policy Committee meeting.

In a statement, the central bank said the domestic financial markets have been resilient and that the ringgit has strengthened to reflect economic fundamentals.

Malaysia’s international reserves also climbed to US$100.5 billion (RM431.7 billion) as at Aug 30, compared with US$100.4 billion (RM431.0 billion) registered as of Aug 15.

OANDA Asia-Pacific Trading Head Stephen Innes said the bulls are charging forward in a big way for the ringgit.

“It has turned from a stable to a strong currency. Soaring trade export figures are certainly not a sign of a struggling economy while firming oil prices bode well for the ringgit,” he said.

The ringgit ended higher against other major currencies.

The New Straits Times via 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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