Ringgit strengthens as US dollar weakens

Ringgit strengthens as US dollar weakens
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KUALA LUMPUR (Nov 17): The ringgit appreciated to its strongest level versus the US dollar so far today at 4.1637 due to a weakening US dollar. The ringgit had also strengthened on Malaysian interest rate hike expectation.

At 10:37am, the ringgit was traded at 4.1643 versus the US dollar.

The exchange rate so far today was between 4.1637 and 4.1735.

At 10:41am, the US Dollar Index, which measures the value of the US dollar against a basket of currencies, fell to 93.55.

Yesterday, RHB Research Institute Sdn Bhd wrote in a note that the ringgit had strengthened partly due to the weaker US dollar on uncertainty over the US Republican tax bill.

"This (stronger ringgit) may also be due to the hawkish sentiment by Bank Negara Malaysia from its monetary policy statement on Nov 9 and expectations of a wider current account surplus recorded in 3Q17.

"Looking forward, we expect MYR to recover gradually over time as the Malaysian economy is still expected to grow at a sustained pace. We are raising our forecast for MYR to MYR4.10/USD at end-2018, from MYR4.15/USD previously, and compared to MYR4.22/USD expected this year," RHB said.