The range bound ringgit

KUALA LUMPUR, Aug 2 — The ringgit closed flat against the US dollar today on lack of catalysts, but managed to halt two days of decline, prompting optimism over the local currency’s outlook, dealers said.

At 6pm, the local unit stood at 4.2840/2870 against the greenback compared with Tuesday’s close of 4.2840/2870.

Internet-based forex trading and currency information services, OANDA, Head of Trading Asia-Pacific, Stephen Innes said the ringgit should stay in favour against the US dollar, provided the greenback remained weak on a dovish US Federal Reserve outlook.

“However, a return of US fiscal policy to the headlines or a more aggressive US Federal Reserve balance sheet initiative will present some serious headwinds to this view,” he told Bernama.

The ringgit was also mixed against a basket of major currencies.

It rose against the Singapore dollar to 3.1507/1541 from 3.1556/1592 on Monday and versus the yen, appreciated to 3.8668/8705 from 3.8815/8853.

It declined against the British pound to 5.6660/6717 from 5.6647/6700 and eased against the euro to 5.0710/0754 from 5.0607/0655. — 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

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