Anticipation of better Q2 GDP data lifts ringgit

 

KUALA LUMPUR: 

The anticipation of better gross domestic product (GDP) data for the second quarter of 2024 (Q2 2024) has resulted in the ringgit gaining some ground against the US dollar at today’s close.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the ringgit’s performance has been quite sanguine amid the anticipation of better Q2 2024 GDP growth, to be announced on Friday.

He also noted expectations that the US Federal Reserve will likely lower interest rates in its September Federal Open Market Committee meeting.

Besides, the ringgit was on a firmer footing against major currencies except against the British pound as the UK continues to witness a lower-than-expected unemployment rate and better-than-expected wage growth,

 he told Bernama.

Afzanizam said the US Producer Price Index (PPI) which will be released later tonight will be closely monitored by market participants for new insights.

Consensus estimate has pegged the PPI at 2.3% in July compared to 2.6% in June,

 he said.

At 6pm, the ringgit inched up to 4.4440/4.4505 versus the greenback from yesterday’s close of 4.4500/4.4580.

At the close, the ringgit traded mostly higher against a basket of major currencies.

It strengthened vis-a-vis the euro to 4.8520/4.8591 from 4.8630/4.8717 at yesterday’s close and rose against the Japanese yen to 3.0053/3.0099 from 3.0206/3.0263. However, it depreciated versus the British pound to 5.6839/5.6922 from 5.6760/5.6862 previously.

Meanwhile, the ringgit also traded mostly lower against Asean currencies.

The local note gained versus the Singapore dollar to 3.3590/3.3642 from 3.3600/3.3663 at yesterday’s close.

However, it declined against the Indonesian rupiah to 280.6/281.1 from 278.8/279.5, dropped vis-a-vis the Thai baht to 12.6351/12.6578 from 12.6130/12.6414 and was lower against the Philippine peso to 7.80/7.81 from 7.76/7.78 previously. - FMT