Ringgit slightly weaker at the open in thin trading

KUALA LUMPUR, Dec 18 — The ringgit opened lower against the US dollar today on weak demand for the local note. At 9 am, the local unit stood at 4.0820/0870 from 4.0780/0810 on Friday’s close.

OANDA Head of Trading Asia-Pacific, Stephen Innes, said despite the weaker number at the opening, the stable oil prices, healthy economic outlook and a more hawkish tilt from the Bank Negara Malaysia should lead the local currency as well as the other Asean currencies to perform well.

“Also, inflows into emerging markets should increase given the dovish US Federal Reserves narrative and a strengthening current account surplus,” he said in a statement

He said although the momentum was waning at year-end, dealers were now targeting the ringgit at RM3.90 against the US dollar in 2018.

Meanwhile, the ringgit performed well against a basket of other currencies.

The local note strengthened against the Singapore dollar to 3.0246/0290 from Friday’s close of 3.0286/0313 and rebounded against the yen to 3.6204/6252 from 3.6359/6389 previously.

The ringgit rose against the euro to 4.7955/8030 from 4.8100/8152 on Friday and traded better against the pound at 5.4389/4472 from 5.4763/4816. — 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