The Ringgit remains constructive

KUALA LUMPUR: The ringgit was higher against the US dollar US dollar early Thursday, as the local note remained attractive due to its better position than regional peers to withstand a steeper US yield curve, a dealer said.

At 9 am(0100gmt), the local unit stood at 4.0650/0680 from 4.071/0770 at Wednesday’s closing.

The primary focus overnight was the US yield curve which continued to steepen as US 10-year yields were trading at a nine-month high in the wake of the Tax Reform Bill.

OANDA Head of Trading Asia-Pacific, Stephen Innes, said the the ringgit has positioned itself well compared to its peers.

However, holiday thinned-trading conditions had long-term investors staying on to the sidelines until early 2018 which was likely to temper optimism, he said.

“But the ringgit remains constructive, and one can only suspect year-end market conditions are holding the local note back from testing this year’s ringgit against the dollar lows,” he said in a statement.

The ringgit was traded mostly higher against a basket of major currencies.

The local note gained higher against the Singapore dollar to 3.0234/0263 from Wednesday’s 3.0247/0310 and traded higher against the British pound at 5.4333/4393 from 5.4515/4607 on Wednesday.

It eased against the euro to 4.8268/8308 from Wednesday’s close of 4.8188/8264, It was lower against the yen to 3.5888/5917 from 3.5976/6035 Wednesday.  Bernama

The Star Malaysia

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