Ringgit Trades Flat at the Open

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

Malay Online 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
Stephen Innes

Latest posts by Stephen Innes (see all)