Ringgit ends higher amid confidence in Malaysia’s economic fundamentals

 Optimism over AI-related investments and expectations of sustained domestic growth supported the local currency, says analyst.

KUALA LUMPUR:

The ringgit rebounded to close higher against the US dollar today amid confidence in Malaysia’s economic fundamentals, supported by optimism over artificial intelligence (AI)-related investments and expectations of sustained domestic growth, an analyst said.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said that while the US dollar remains firm ahead of the US Federal Reserve’s monetary policy decision, the ringgit’s resilience suggests that domestic fundamentals may be providing an important buffer against external uncertainties.

“Looking ahead, expectations surrounding the possible normalisation of the overnight policy rate (OPR) could lend further support to the local currency, although the near-term direction will remain sensitive to developments in US monetary policy and geopolitical risks,” he told Bernama.

At 6pm, the ringgit rose to 4.0745/4.0790 against the US dollar from yesterday’s close of 4.0865/4.0900.

Against major currencies, the ringgit strengthened against the British pound to 5.4130/5.4190 from 5.4412/5.4458 at yesterday’s close, gained vis-a-vis the Japanese yen to 2.5812/2.5843 from 2.5903/2.5927 and rose against the euro to 4.5337/4.5387 from 4.5524/4.5563.

The ringgit was also mostly higher against its Asean peers.

It rose against the Singapore dollar to 3.1775/3.1813 from 3.1883/3.1913 at yesterday’s close, and the Indonesian rupiah to 224.0/224.4 from 225.0/225.3.

It also gained against the Thai baht to 12.0726/12.0902 from 12.1010/12.1160, but the local currency remained unchanged vis-a-vis the Philippine peso at 6.36/6.37. - FMT