KUALA LUMPUR – The ringgit staged another strong move, thanks to stronger oil and commodity prices.
At 9.06am today, the local note jumped to 4.0470/0530 from Friday’s close of 4.0500/0550.
Axi chief global market strategist Stephen Innes said the ringgit is in a full catch-up mode with commodity prices trading firmer and oil prices well supported at recent highs due to vaccine optimism as enthusiasm for commodity-linked-currencies supersedes all else at the moment.
“My concern is that oil prices have gone too far and that they could be sensitive to near term economic or even hiccup in the vaccine supply chains but overall our post-US election optimism for the ringgit endures,” he said.
At press time, the crude Brent traded higher near US$50 per barrel, while the West Texas Intermediate at US$46.58 per barrel.
In addition, Innes said the fact that Brexit talks did not end with a no-deal Brexit is encouraging.
It was reported the United Kingdom and Europe leaders had pledged to go “the extra mile” in efforts to agree to a deal.
“I think the key risk this week will be the outcome of the Federal Open Market Committee final meeting for 2020,” he noted.
The Fed will hold its last policy meeting of the year tomorrow and Wednesday.
Meanwhile, the ringgit also traded mostly higher against other major currencies.
It rose against the Singapore dollar to 3.0292/0339 from 3.0301/0332 at Friday's close and increased against the euro to 4.9042/9130 from 4.9074/9122.
It also strengthened against the Japanese yen to 3.8899/8960 from 3.8927/8964 previously but declined against the British pound to 5.3797/3893 from 5.3537/3585. –Bernama, December 14, 2020
