KUALA LUMPUR: The ringgit closed slightly lower today against the US dollar on profit-taking following recent gains, said an analyst.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the ringgit lost some ground today as it appreciated substantially since early May when the US dollar/ringgit pair was trading at around RM4.7725.
Yesterday, the ringgit bounced to 4.6800 versus the greenback, a level last seen two months ago.
However, he noted that the country’s first quarter (Q1) gross domestic product (GDP) growth came in better than expected at 4.2%, showing that the Malaysian economy was quite resilient despite having to endure a weaker ringgit and the rising cost of living.
Bank Negara Malaysia (BNM) governor Abdul Rasheed Ghaffour announced today that the Malaysian economy expanded at a higher rate of 4.2% in Q1 2024 from 2.9% in Q4 2023, driven by stronger private expenditure and the positive turnaround in exports.
Afzanizam noted that BNM has remained consistent in its messaging as the central bank continues to see upside risks to inflation.
“This could translate into a steady overnight policy rate in the near term as the central bank is very mindful of the price stability risk,” he added.
At 6pm, the ringgit retreated to 4.6865/4.6890 versus the greenback from yesterday’s close of 4.6810/4.6850.
The ringgit traded mostly higher at the close against a basket of major currencies.
It appreciated versus the Japanese yen to 3.0071/3.0089 from yesterday’s close of 3.0264/3.0292 and gained against the euro to 5.0816/5.0843 from 5.0882/5.0926 but was lower vis-a-vis the British pound at 5.9303/5.9335 from 5.9299/5.9350 previously.
The local note traded higher against Asean currencies.
It strengthened against the Singapore dollar to 3.4784/3.4806 from 3.4813/3.4846 at yesterday’s close and gained against the Philippine peso to 8.13/8.14 from 8.14/8.15.
It also rose versus the Thai baht to 12.9390/12.9516 from 12.9503/12.9671 yesterday and inched up vis-a-vis the Indonesian rupiah to 293.6/294 from 293.9/294.3. - FMT
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