The Ringgit should remain in favour

KUALA LUMPUR: The ringgit opened marginally lower against the US dollar today after rallying yesterday in tandem with regional peers.

At 9 am, the local unit ended at 4.1025/1065 against the greenback from 4.1010/1050 on Tuesday.

OANDA Head of Trading Asia-Pacific Stephen Innes said the US Federal Reserve chair nominee Jerome Powell’s dovish tone, augured well for the ringgit.

Meanwhile, he said investors were becoming desensitised to North Korea missile tests, lending support to the regional currency as well.

“But if there is an unexpected political breakthrough on the North Korean issue, it will be all aboard to the Asia currency train,” said Innes.

On the home front, he said the market still has not fully priced in the prospects of Bank Negara Malaysia’s interest rate increase in January.

“Not to mention cheap equity valuations which should continue to support the local currency,” he said.

Meanwhile, against a basket of major currencies, the local note was traded mostly higher.

The ringgit firmed up against the Singapore dollar to 3.0481/0523 from 3.0493/0527 on Tuesday and appreciated vis-a-vis the yen to 3.6738/6783 from 3.6866/6906 yesterday.

The local note strengthened against the euro to 4.8602/8654 from 4.8761/8825 yesterday but fell against the British pound to 5.4797/4867 from 5.4556/4621 on Tuesday. — Bernama

New Straits Times

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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