KUALA LUMPUR, Dec 19 — The ringgit was flat against the US dollar in early trade as currency traders were on the sidelines waiting for the final bill of the US’ plan to reduce corporate taxes.
At 9am, the local unit stood at 4.0800/0840 from 4.0800/0830 yesterday’s closing.
The US House and Senate are expected to vote on the bill by mid-week, before it goes to the White House for President Trump’s signature.
OANDA Head of Trading Asia-Pacific Stephen Innes said the dollar is still looking for its mojo and despite the US yields rising and effervescent US equity market the dollar falling under some minor pressure perhaps reflecting the expected market tone in 2018.
“For the dollar to stage a significant rally, it’s in desperate need of an inflation injection as at this moment, as markets remain overly skeptical that this tax reform bill will deliver a substantial bump to the US economy.
“As for the local currency trading, the market remains very quiet heading into year-end, but the optimistic side of global growth and resilient commodity prices should steer the note through year-end on an even keel,” he added.
Meanwhile, the ringgit was mostly down against a basket of other currencies.
The local note reversed yesterday’s gains against the Singapore dollar to 3.0260/0297 from 3.0247/0280 yesterday, and depreciated against the yen to 3.6241/6283 from 3.6218/6255 previously.
The ringgit strengthened against the euro to 4.8075/8126 from 4.8095/8147 yesterday and traded lower against the British pound at 5.4558/4624 from Monday’s 5.4456/4512. — Bernama
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