Budget concerns weigh on Ringgit

KUALA LUMPUR, Oct 25 — The ringgit ended lower against the US dollar in quiet session today as investors remained cautious over local capital markets against the backdrop of a possible rise in US interest rates.

At 6pm, the local unit was traded at 4.2340/2370 versus the US dollar from 4.2320/2350 on Tuesday.

OANDA Head of Trading Asia-Pacific Stephen Innes said attention were also focused on who would be appointed next as the US Federal Reserve chair.

On the domestic front, Innes said investors would closely watch the 2018 Budget announcement this week, where Prime Minister Datuk Seri Najib Razak is expected to walk the fine line between reducing fiscal deficit and providing enough tax incentives.

“What happens on the deficit front will likely shape the ringgit’s fortunes in the near to medium-term outlook. A balanced budget would greatly appeal to foreign investors,” Innes told Bernama.

Meanwhile, the ringgit was traded mixed against other major currencies.

The local note rose against the yen to 3.7069/7105 from 3.7234/7267 on Tuesday and improved against the Singapore dollar to 3.1055/1079 from 3.1077/1110 yesterday.

Malay Mail via 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