Ringgit strengthens in early trade

ringgit-dollar

KUALA LUMPUR: The ringgit continued yesterday’s favourable momentum against the US dollar today as geopolitical factors and the release of minutes of the last US Federal Open Market Committee (FOMC) meeting became themes that influenced the market, a dealer said.

At 9 am, the ringgit was traded at 4.2940/2970 against the greenback from 4.2950/2990 on Wednesday.

FXTM Research Analyst, Lukman Otunuga, said geopolitical tensions stemming from North Korea’s missile launch had encouraged investors to adopt a more cautious stance.

“The re-emergence of geopolitical tensions in Asia, ‘Britain exit’ developments and ongoing political instability in Washington could make for wild trading conditions in the third quarter of 2017,” he said in a statement.

FOMC minutes released yesterday gave no new insights on the outlook for US interest rates even though most Fed policymakers agreed with the need to raise interest rates.

The ringgit was traded weaker against other major currencies.

It declined against the Singapore dollar to 3.1093/1129 from 3.1042/1082 on Wednesday and depreciated against the British pound to 5.5491/5556 from 5.5466/5522 yesterday.

The local note also weakened against the yen to 3.7987/8027 from 3.7801/7843 yesterday and eased against the euro to 4.8694/8745 from 4.8632/8686 on Wednesday.