By Aaron Saldanha (Reuters News )
The Ringgit Soars
The Malaysian ringgit moved closer to the psychologically significant level of RM4 to the US dollar, firming 0.15 per cent to levels last seen in September 2016.
Malaysia is due to report trade data tomorrow, with economists polled by Reuters expecting the trade balance to jump to a RM10.4 billion surplus from the RM8.6 billion surplus reported for September.
“The Malaysian Central Bank has sounded overtly hawkish of late and appears more open to a stronger currency to ward off potential inflation,” Stephen Innes, head of Asia-Pacific trading for Oanda, wrote in a note.
“Given the market is baking in a January rate hike with a likely Q2 or Q3 follow up, the MYR (ringgit) will become much more sensitive to economic data for the next few months.” — Reuters