Ringgit continues to soar

KUALA LUMPUR, Nov 22 — The ringgit opened sharply higher against the US dollar this morning as demand for the local note intensified with heightened investor confidence in the currency’s fundamentals.

Dealers attributed the positive spillover to Malaysia’s 6.2 per cent economic growth in the third quarter of this year and the dollar’s subdued performance.

 At 9am, the local unit was traded 120 basis points higher at 4.1260/1290 against the greenback from yesterday’s close of 4.1380/1420.

OANDA Head of Trading Asia-Pacific Stephen Innes told Bernama the ringgit has been unfettered by the Europen Union’s political noise or the recent bid in the US dollar across broader markets.

“In fact, the ringgit continues to march to the beat of its own drummer as the market remains exceptionally bullish after the massive bounce in the third quarter (Q3) gross domestic product (GDP) data released last week.

“As it stands, a January 2018 rate hike looks all, but, certain and the robust Q3 GDP does suggest an additional rate hike for 2018, suggesting the ringgit has a long way to go before the currency runs out of gas,” said Innes.

Malaysia Mail

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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