Ringgit extends gains against dollar amid US economic concerns

 

KUALA LUMPUR: 

The ringgit maintained its upward momentum against the US dollar at today’s opening, breaking through the RM4.14 level for the first time since November 2021, an economist said.

This was attributed to better-than-expected local economic data, the recent US interest rate cut and concern over US economic outlook.

At 8am, the ringgit was traded at 4.1490/4.1600 against the dollar, compared to Tuesday’s close of 4.1550/4.1605.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the US Conference Board Consumer Confidence Index declined more than expected to 98.7 points, suggesting that consumers, who form two-thirds of the US economy, are wary of the future outlook.

“The US Dollar Index (DXY) fell as a result by 0.49% to 100.360 points.

As such, the ringgit should remain positive in light of further interest rate cuts in the US,

 he noted.

The ringgit weakened against a basket of major currencies.

It fell against the euro to 4.6427/4.6550 from 4.6274/4.6335 at Tuesday’s close, depreciated against the British pound to 5.5704/5.5852 from 5.5590/5.5663, and weakened vis-à-vis the Japanese yen to 2.9002/2.9083 from 2.8796/2.8836.

It also traded mixed against Asean currencies.

The ringgit strengthened versus the Indonesian rupiah to 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 at Tuesday’s close.

However, it fell against the Singapore dollar to 3.2348/3.2437 from 3.2244/3.2289 and slipped to 12.7184/12.7607 from 12.6426/12.6640 against the Thai baht. - FMT