Ringgit Trades slightly firmer

Oanda Corp head of trading for Asia Pacific Stephen Innes said the majority of central banks within the Group of 10 are turning dovish, signalling a return of investment flows which should offset Malaysia’s risks to higher US interest rates and a stronger US dollar.

“More so given the trial and error approach the Fed will take to reduce the balance sheet, implying that regardless who takes the helm at the Fed, interest-rate normalisation may not deviate too far for from the current dot plot,” Innes said.

He said Malaysia’s 2018 budget allocation is positive for the ringgit as it is geared towards maintaining stability in both the foreign-exchange and bond markets through fiscal prudence.

“The financial burden of lower oil prices in 2017 will be offset by Goods and Services Tax receipts where income tax is anticipated to make up almost half of Malaysian government revenue amid robust economic growth,” he said, adding improving oil prices will also be viewed positively by markets.

The Malaysian Reserve

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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