The Ringgit Roars

KUALA LUMPUR: The ringgit continued its uptrend to end at a ten-month high of 4.2080/2110 against the US dollar, versus yesterday’s 4.2370/2400 amid encouraging and conducive domestic economic data.

Since the foreign exchange market resumed trading on Tuesday after the long holidays, the local unit has appreciated by 290 basis points.

Bank Negara Malaysia (BNM) has also maintained the Overnight Policy Rate at 3.00 per cent since July 13, 2016 at its Monetary Policy Committee meeting.

In a statement, the central bank said the domestic financial markets have been resilient and that the ringgit has strengthened to reflect economic fundamentals.

Malaysia’s international reserves also climbed to US$100.5 billion (RM431.7 billion) as at Aug 30, compared with US$100.4 billion (RM431.0 billion) registered as of Aug 15.

OANDA Asia-Pacific Trading Head Stephen Innes said the bulls are charging forward in a big way for the ringgit.

“It has turned from a stable to a strong currency. Soaring trade export figures are certainly not a sign of a struggling economy while firming oil prices bode well for the ringgit,” he said.

The ringgit ended higher against other major currencies.

The New Straits Times via Bernama

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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