The ringgit continued its upward trend against the US dollar at today’s opening, surpassing the RM4.14 mark for the first time since November 2021, according to an economist.
Afzanizam Rashid, chief economist at Bank Muamalat Malaysia Bhd, noted that the US Conference Board Consumer Confidence Index dropped more than anticipated to 98.7 points, indicating that consumers—who account for two-thirds of the US economy—are cautious about the future.
Consequently, the US Dollar Index (DXY) decreased by 0.49% to 100.360 points. Rashid remarked that the ringgit is likely to remain strong, especially with the potential for further interest rate cuts in the US.
The strengthening ringgit is linked to stronger-than-expected local economic data, a recent US interest rate cut, and concerns regarding the US economic outlook. At 8 am, the ringgit was trading at 4.1490/4.1600 against the dollar, an improvement from Tuesday’s close of 4.1550/4.1605.
However, the ringgit did weaken against several major currencies. It declined against the euro, trading at 4.6427/4.6550, down from 4.6274/4.6335 at Tuesday’s close.
It also fell against the British pound to 5.5704/5.5852 from 5.5590/5.5663, and weakened against the Japanese yen, trading at 2.9002/2.9083 compared to 2.8796/2.8836 previously.
In contrast, the ringgit had a mixed performance against ASEAN currencies. It strengthened against the Indonesian rupiah, trading at 273.1/274.0 from 273.5/274.0, and rose against the Philippine peso to 7.37/7.40 from 7.39/7.40.
However, it slipped against the Singapore dollar to 3.2348/3.2437 from 3.2244/3.2289 and fell to 12.7184/12.7607 against the Thai baht, down from 12.6426/12.6640. – Focus Malaysia
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