Ringgit lower at the open but still near 52 week highs

KUALA LUMPUR: The ringgit was lower against the US dollar early Thursday, weighed down by the decline in the oil prices, dealers said.

At 9 am(0100gmt), the local unit was traded at 4.0840/0890 against the US dollar from 4.0800/0830 on Wednesday.

OANDA Head of Trading Asia-Pacific, Stephen Innes, said despite the lower oil prices, the foreign exchange (FX) market should continue to express its bullish Asia FX views through the ringgit which rallied again yesterday pushing through a 52-week high.

“The unexpected arrival of interest rate normalisation is taking hold of the sentiment. And with Malaysia’s investors already riding the wave of a robust global demand, the higher interest rate scenario is adding to the ringgit’s appeal.

“Since the market has still not fully priced in a January rate increase nor the real prospects of a follow-up interest rate rise the second or third quarter, the rally could extend well into year-end as traders set sights on the critical 4.00 level for the ringgit against the US dollar,” said Innes.

Against a basket of major currencies, the local note was mixed. It rose against the Singapore dollar to 3.0317/0361 from 3.0330/0364 on Wednesday and increased against the yen to 3.6458/6512 from 3.6598/6629 Wednesday.

The ringgit fell against the British pound to 5.4795/4874 from 5.4660/4716 Wednesday and against the euro, it eased to 4.8416/8487 from 4.8409/8461 on Wednesday. – Bernama

The Star 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
Stephen Innes

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