Ringgit a touch weaker but not ruffled post FOMC

KUALA LUMPUR: The ringgit opened lower against the US dollar today as the greenback advanced after the US Federal Reserve System (Fed) left its interest rate unchanged at its meeting yesterday.

At 9am, the local unit was quoted at 4.1965/2005 against the US dollar from 4.1860/1890 yesterday.

Oanda Head of Trading Asia-Pacific, Stephen Innes, said Fed’s decision to maintain its interest rate forecast of one increase this year and three in 2018 could leave more room for the US dollar to rise further.

“However, I am not expecting a pullback of capital funds on Asia’s emerging market foreign exchanges as global growth remains solid,” he told Bernama.

Innes said the ringgit’s initial resistance was expected at 4.20 against the US dollar.

“The next target for the ringgit is at 4.10-15 level with topside resistance at 4.25 against the US dollar,” said Innes.

Against other major currencies, however, the ringgit was traded mostly higher.

The local note rose against the Singapore dollar to 3.1069/1108 from 3.1144/1177 on Wednesday and improved to 3.7302/7348 from 3.7597/7630 versus the yen yesterday.

Against the euro, it appreciated to 4.9846/9898 from 5.0278/0331 yesterday. It, however, fell against the British pound to 5.6611/6682 from 5.6712/6769 on Wednesday.– Bernama

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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