Xinhua, Kuala Lumpur :
Malaysian Ringgit climbs against the U.S. dollar for the third consecutive days on Friday, as the greenback sentiment affected by U.S recent poor economic data.
The Ringgit opened higher against the U.S. dollar at 4.1655. At one point it has risen 0.16 percent or 0.0068 to 4.1588. Year to date, the Ringgit has still depreciated 2.76 percent against the U.S. dollar.
The U.S. dollar underperformed recently as U.S. consumer confidence fell unexpectedly.
OANDA Asia-Pacific trading head Stephen Innes said in a note on Friday that currency carry appeal has the Ringgit trading on better footing as the markets continue to debate the next move by the U.S. Federal Reserve as a growing chorus of support suggest the Fed will be on hold until mid of 2019 at least.
“A more dovish Fed will lend support to growth assets and carry trade, and the Ringgit should benefit on both front,” he added.
While oil prices continued to be a concern, he opined that the commodity will likely to benefit from stimulus measures in the form of more aggressive tax cuts in some countries, and this should support the Ringgit.
“But liquidity remains very thin which is dissuading investors from reengaging, so caution should be exercised in holiday-thinned markets,” he said.
Meanwhile, some foreign exchange strategists foresee the Ringgit to recover in the second half next year, due to U.S. economy weakens and the Fed turns dovish.
Malaysian Ringgit climbs against the U.S. dollar for the third consecutive days on Friday, as the greenback sentiment affected by U.S recent poor economic data.
The Ringgit opened higher against the U.S. dollar at 4.1655. At one point it has risen 0.16 percent or 0.0068 to 4.1588. Year to date, the Ringgit has still depreciated 2.76 percent against the U.S. dollar.
The U.S. dollar underperformed recently as U.S. consumer confidence fell unexpectedly.
OANDA Asia-Pacific trading head Stephen Innes said in a note on Friday that currency carry appeal has the Ringgit trading on better footing as the markets continue to debate the next move by the U.S. Federal Reserve as a growing chorus of support suggest the Fed will be on hold until mid of 2019 at least.
“A more dovish Fed will lend support to growth assets and carry trade, and the Ringgit should benefit on both front,” he added.
While oil prices continued to be a concern, he opined that the commodity will likely to benefit from stimulus measures in the form of more aggressive tax cuts in some countries, and this should support the Ringgit.
“But liquidity remains very thin which is dissuading investors from reengaging, so caution should be exercised in holiday-thinned markets,” he said.
Meanwhile, some foreign exchange strategists foresee the Ringgit to recover in the second half next year, due to U.S. economy weakens and the Fed turns dovish.
