KUALA LUMPUR, 9 November (Bernama) — Analysts said the ringgit began higher against the US dollar today as demand for the greenback dropped in thin trade.
The local currency rose somewhat to 4.7330/7350 versus the US dollar at 9 a.m., up from 4.7340/7385 at the closing on Tuesday.
According to SPI Asset Management Managing Director, Stephen Innes, the lower US dollar index is due to markets now pricing in the peak US Fed Reserve’s (Fed) interest rates as a result of the US midterm election outcomes.
“The political impasse decreases the likelihood of expansionary fiscal policy, which feeds Fed rate expectations.”
“Lower rates volume should reflect decreased stock and foreign exchange (FX) volume that supports growth equities, pushing a weaker US dollar. Additionally, the midterm election-related dollar depreciation may spark long trades in oil and industrial metals,” he told Bernama.
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