Ringgit Wins Again, Strong Compared to Other ASEAN Currencies


 Recently, the Malaysian Ringgit (RM) was on a strengthening level against the US dollar in the early session after US treasury yields and the dollar index fell to the lowest level in several months.

At exactly 11 this morning, the ringgit was at 4.6410 compared to yesterday which closed at 4.6704.

According to the Managing Partner of SPI Asset Management, Stephen Innes said that the US dollar weakened due to Federal Reserve (Fed) Governor Christopher Waller's dovish tone causing a tendency towards lower interest rates.

Waller's statement is because he is confident that the current policy is in the best position to ease the economy and return US inflation to 2 percent.

According to Innes, the statement from a Fed leader only confirmed the tendency of the market which is ready to see a reduction in interest rates next year.

He also said that the US two-year treasury yield related to interest rates has reached 4.75 percent, which is the lowest point since last August. This information will benefit the ringgit and not surprisingly when the market starts trading below the value of RM4.50.

In addition, the ringgit traded lower against major currencies such as the euro which fell to 5.1121. However, the ringgit is seen to be stronger against the Japanese yen with an increase to 5.9054.

The ringgit also traded high compared to other ASEAN currencies such as the Singapore dollar where it rose to 3.4920, the Philippine peso to 8.39 and the Indonesian rupiah to 300.6.

As for the Thai baht, it slightly decreased to a value of 13.3915 compared to yesterday's 13.3629.