Asia EM FX on the rise especially the Ringgit

Sept 7 (Reuters) - Asian currencies rose on Thursday as
investors saw the resignation of U.S. Federal Reserve Vice Chair
Stanley Fischer as a sign that it will be even more cautious
about raising interest rates again, implying further weakening
in the dollar.
    "We could read into the Stanley Fischer surprise overnight,
considering that he was leaning towards interest rate
normalisation. I think the market thinks that now the chance of
interest rate normalisation may get delayed further," said
Stephen Innes, head of trading  Asia  at OANDA.
    The U.S. dollar hit a multiyear low against the Canadian
dollar on Wednesday after the Bank of Canada surprised many by
raising interest rates, but rose against the yen albeit
marginallty, as worries over the Korean peninsula favoured the
popular safe-haven currency.

    The Malaysian ringgit surged to a fresh near 10-month
high against the dollar as investors looked forward to the
Malaysian central bank's decision on its benchmark rate later in
the day, which is widely expected to remain unchanged, according
to a Reuters poll.
    "A standout in the region has been the Malaysian ringitt. If
we consider yesterday's export numbers, they were a rocking
high, which is not a sign of a weak economy," said Stephen
    "The currency has been very stable and strong this year,
which is appealing to investors," Innes added.
    Malaysia's export growth in July rose 30.9 percent from a
year earlier on higher shipments of manufactured products and
mining goods, beating the 23.1 percent rise forecast by a
Reuters poll.
    The following table shows rates for Asian currencies against
the dollar at 0514 GMT,

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