Strong exports data lifts ringgit in early trading

  • Forex
  • Thursday, 05 Sep 2019

KUALA LUMPUR: The ringgit was higher against the US dollar in the early trading today as market sentiment for the local note was lifted by the country's strong exports data.

At 9.14am, the ringgit was traded at 4.1930/1980 against the greenback from 4.2020/2050 at the close yesterday.

A dealer said exports increased 1.7 per cent year-on-year to RM87.96 billion due to higher exports to Taiwan, the United States, China and Singapore, while imports declined 5.9 per cent to RM73.69 billion.

"Malaysia's trade surplus in July 2019 rose 75.6 per cent year-on-year to RM14.27 billion. This higher surplus helps strengthened the ringgit's sentiment,” he added.

Meanwhile, the ringgit was traded mostly higher against other major currencies, except against the British pound, where it fell to 5.1318/1395 from 5.1214/1267.

The local currency rose against the Singapore dollar to 3.0287/0330 from 3.0311/0341, inched up against the yen to 3.9397/9455 from 3.9556/9588 and gained against the euro to 4.6261/6329 from 4.6306/6343. - Bernama

Stephen Innes, market strategist for AxiTrader (Asia Pacific), said that while Malaysia trade data continued to outperform expectations, the focus has remained on external factors.

"With external factors driving the bus, precisely global risk sentiment and the Yuan, there has been less focus on domestic concerns," he said in a note.

In view of this, the negativity weighing on the ringgit could ease over the near term as the yuan shrugs off the negative pressure and oil prices rise, in addition to the surprisingly robust trade data, he added.

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