Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid noted that the People’s Bank of China (PBOC) has unveiled a multitude of monetary support measures, including banks’ reserve requirement and interest rate cuts, as well as measures to support the real estate market.
he told Bernama.This has somewhat alleviated concerns over the beleaguered Chinese economy as China is seen struggling to achieve its 5% growth target,
Afzanizam also noted that Malaysia’s lower-than-expected inflation rate, announced yesterday, suggests Bank Negara Malaysia (BNM) is likely to maintain the overnight policy rate (OPR) at its current level for the remainder of 2024 and potentially into 2025.
He said BNM is demonstrating prudence in its monetary policy approach, remaining vigilant against inflationary risks.
he added.This cautious stance has contributed to improved confidence, as seen in the recent appreciation of the ringgit against the US dollar,
At 6pm, the ringgit surged to 4.1550/4.1605 against the US dollar, up from yesterday’s close of 4.2000/4.2060, marking a year-to-date gain of 10.49%.
This was the ringgit’s highest closing level since Nov 11, 2021, when it was at 4.1525/4.1545.
It also performed strongly against Asean and other major currencies.
It gained versus the euro to 4.6274/4.6335 from 4.6645/4.6712 yesterday, appreciated against the British pound to 5.5590/5.5663 from 5.5805/5.5885 and strengthened vis-a-vis the Japanese yen to 2.8796/2.8836 from 2.9238/2.9282.
It also traded higher against Asean currencies.
It advanced against the Singapore dollar to 3.2244/3.2289 from 3.2503/3.2552 at yesterday’s close and bounced against the Philippine peso to 7.39/7.40 from 7.50/7.52.
The ringgit also improved versus the Indonesian rupiah to 273.5/274 from 276.1/276.7 and went up to 12.6426/12.6640 from 12.7203/12.7451 against the Thai baht. - FMT
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