Ringgit ends higher against US dollar on demand for EM currencies

November 8, 2018 | By | Reply More

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KUALA LUMPUR: The ringgit ended marginally higher against the US dollar today lifted by risk appetite on emerging market currencies in the aftermath of the US mid-term results whereby the Liberal Democrats party took control of the House of Representatives, dealers said.

At 6pm, the ringgit stood at 4.1620/1670 versus the greenback from Wednesday’s close of 4.1640/1670.

FXTM global head of currency strategy and market research Jameel Ahmad said investors were descaling away from US dollar buying positions and had potentially been put off holding onto their positions because of the consensus that the Liberal Democrats taking control of the lower house provided a potential roadblock to US President Donald Trump introducing further fiscal stimulus.

“Softness in the greenback is something that will be warmly welcomed from different currencies across the globe … with this overall trend of stronger Asian foreign exchange generally suggesting that investors are gradually dipping back into buying emerging market currencies at weak valuations,” he said.

Meanwhile, OANDA head of trading Asia-Pacific Stephen Innes said Asia currencies continued to benefit from yield appeal supported by very healthy inflow to North Asia equity markets and Southeast Asia bond markets.

The local unit was also higher against other major currencies.

The ringgit rose against the Singapore dollar to 3.0344/0385 from 3.0419/0445 on Wednesday, and vis-a-vis the Japanese yen, it appreciated to 3.6605/6659 from 3.6830/6860.

It increased against the British pound to 5.4589/4659 from yesterday’s 5.4815/4871 and strengthened against the euro to 4.7534/7600 from 4.7844/7883. — Bernama

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