The Ringgit closes higher

KUALA LUMPUR, Dec 11 — The ringgit closed higher against the US dollar, on the back of encouraging October trade data amid expectation that Bank Negara Malaysia will raise interest rates next year, a dealer said.

At 6pm, the local unit was quoted at 4.0750/0780 against the US dollar from 4.0870/0890 on Friday.

Oanda Head of Trading Asia-Pacific Stephen Innes said while interest rates were expected to be raised next year, speculation of a stronger dollar may present some headwinds for the local note in the near-term.

But “Real domestic and external positives for Malaysia should outweigh risky wagers on the dollar which should continue to support the ringgit’s decisive run.

“However, the market should remain reticent as we enter holiday thin liquidity conditions with the ringgit expected to remain stable to slightly defensive as year-end US corporate demand picks up,” said Innes.

Against a basket of major currencies, the ringgit was traded mostly higher, except against the euro.

The local note rose against the Singapore dollar to 3.0163/0192 from 3.0191/0217 on Friday and advanced against the yen to 3.5941/5974 from 3.5983/6011, previously.

Meanwhile, the ringgit depreciated against the euro to 4.8069/8116 from 4.7961/7997 on Friday and was traded higher against the pound at 5.4487/4535 from 5.5076/5107 previously. — Bernama

Malay Mail via Bernama

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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