Ringgit poised to extend rally

KUALA LUMPUR: The ringgit which has breached the critical 3.98 barrier to the US level is well within reach of the 3.95 level within the short term.

OANDA Corp head of trading Asia Pacific, Stephen Innes said on Monday his expectation was based on a technical perspective as the stars continue to align for the ringgit.

Other positive factors are higher oil prices, a weaker US dollar trend emerging, US equities surging, stable domestic economic landscape and a Bank Negara Malaysia rate hike in the offing.

“However, given that the market has been milking the same signals for the past three months, the real question is where the next major catalyst will emerge?

“Malaysia will be the clear winner from Belt & Road Initiative (BRI) as China will continue to export excess capacity through foreign direct investment while expanding construction contracts to improve critical forks in BRI  transport networks.

“This resulting domestic economic growth from BRI will add significant points to the recent ringgit outperformance,” said Innes.

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