Ringgit Retreats ahead of Key US economic data on Friday

KUALA LUMPUR, Dec 21 — The ringgit retreated from recent gains to close easier against the US dollar today as favourable greenback sentiment curbed interest for regional currencies, a dealer said.

At 6pm, the local unit stood at 4.0760/0800 against the greenback from Wednesday’s 4.0710/0770.

 OANDA Head of Trading Asia-Pacific, Stephen Innes, said there was a minor sell-off in the regional rates markets as higher yield in the US and Europe weighed on investors’ year-end trading decisions as they move to cover US dollar shorts ahead of Friday’s key US economic data releases.

These included the US November Personal Consumption Expenditure print, preliminary durable and capital goods orders for November, new home sales for November and the final Michigan Sentiment Survey.

“The issue at hand is that even a minor positive change in US dollar sentiment could trigger outsized moves in thin, year-end markets.

“So emerging market-Asia investors are erring on the side of caution heading into Friday, which is considered the last active trading day before we ring in 2018,” he told Bernama.

Meanwhile, the ringgit traded mostly lower against a basket of major currencies.

It depreciated against the Singapore dollar to 3.0287/0332 from 3.0247/0310 on Wednesday, weakened versus the British pound to 5.4525/4590 from 5.4515/4607 and eased against the euro to 4.8423/8474 from 4.8188/8264.

The local unit, however, rose vis-a-vis the yen to 3.5912/5957 from 3.5976/6035 yesterday after the Bank of Japan decided to keep its monetary policy and 10-year government bond yield target unchanged. — Bernama

Malaysia Mail

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