The Ringgit Soars

By Aaron Saldanha (Reuters News )

The Ringgit Soars

The Malaysian ringgit moved closer to the psychologically significant level of RM4 to the US dollar, firming 0.15 per cent to levels last seen in September 2016.

Malaysia is due to report trade data tomorrow, with economists polled by Reuters expecting the trade balance to jump to a RM10.4 billion surplus from the RM8.6 billion surplus reported for September.

“The Malaysian Central Bank has sounded overtly hawkish of late and appears more open to a stronger currency to ward off potential inflation,” Stephen Innes, head of Asia-Pacific trading for Oanda, wrote in a note.

“Given the market is baking in a January rate hike with a likely Q2 or Q3 follow up, the MYR (ringgit) will become much more sensitive to economic data for the next few months.” — Reuters

Via Reuters

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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