Ringgit Opens Sharply Higher Against US Dollar

By Azlee Nor Mahmud KUALA LUMPUR, Nov 22 (Bernama) -- The ringgit opened sharply higher against the US dollar Wednesday morning as demand for the local note intensified with heightened investor confidence in the currency’s fundamentals. Dealers attributed the positive spillover to Malaysia’s 6.2 per cent economic growth in the third quarter of this year and the dollar’s subdued performance. At 9 am, the local unit was traded 120 basis points higher at 4.1260/1290 against the greenback from Tuesday’s close of 4.1380/1420. OANDA Head of Trading Asia-Pacific Stephen Innes told Bernama the ringgit has been unfettered by the Europen Union’s political noise or the recent bid in the dollar across broader markets. “In fact, the ringgit continues to march to the beat of its own drummer as the market remains exceptionally bullish after the massive bounce in the third quarter (Q3) gross domestic product (GDP) data released last week. “As it stands, a January 2018 rate hike looks all, but, certain and the robust Q3 GDP does suggest an additional rate hike for 2018, suggesting the ringgit has a long way to go before the currency runs out of gas,” said Innes. Meanwhile, the ringgit was traded higher against a basket of major currencies. The ringgit appreciated against the Singapore dollar to 3.0475/0504 from 3.0525/0568 on Tuesday and increased against the yen to 3.6741/6771 from 3.6805/6844. The local unit improved versus the euro to 4.8435/8483 from 4.8526/8586 and rose against the British pound to 5.4653/4705 from Tuesday’s 5.4779/4836. -- BERNAMA