Ringgit lower in listless trade

KUALA LUMPUR: The ringgit opened lower against the US dollar today on lack of demand for the local note, dealers said.

At 9 am, the unit traded at 4.2400/2430 against the greenback from 4.2340/2370 on Friday.

OANDA Head of Trading Asia-Pacific Stephen Innes said the ringgit weathered the latest US interest rate sell off better that market expected.

He said the ringgit remained undervalued given the surprising levels of economic expansion which created a conducive environment.

“Positioning of the ringgit remains light. In the absence of an active non-deliverable forward (NDF) market and when regional currencies weakens, the ringgit is less likely to do so aggressively given the lack of NDF speculation pressure.

“While there is a need to add some much-needed reserves, perhaps with oil prices looking to move higher, Bank Negara Malaysia may be able to add to the reserve coffers at much lower levels than currently offered,” said Innes.

The benchmark Brent crude was trading 0.37% higher at US$62.30, (RM264.34) per barrel.

Meanwhile, the ringgit was traded mostly higher against a basket of major currencies.

It rose against the Singapore dollar to 3.1062/1087 from 3.1093/1122 on Friday and appreciated versus the yen to 3.7069/7105 from 3.7088/7128, previously.

The ringgit improved against the euro to 4.9205/9257 from 4.9309/9357 on Friday but fell to 5.5400/5452 from 5.5326/5382 compared with the British pound, previously. — Bernama

New Straits Times

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

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes