Ringgit snaps 4-day losing streak ahead of 4Q GDP data tomorrow


  • Forex
  • Tuesday, 11 Feb 2020

KUALA LUMPUR: The ringgit snapped its four-day losing streak to opened higher against the US dollar ahead of the fourth-quarter gross domestic product announcement by the Bank Negara Malaysia tomorrow.

At 9am, the ringgit was quoted at 4.1400/1450 against the US dollar from 4.1450/1480 on Monday.

Maybank IB Research, in a note, estimated the country’s economy would expand by 3.8 per cent year-on-year on the 4Q based on drops in mining and agriculture plus a slowdown in manufacturing.

This is despite a pick up in services and a rebound in the construction.

Demand-side indicators, such as retail trade index, capital goods imports and trade surplus, would point to slowdown in domestic demand and net external demand.

"Our current 2020 growth forecast is +4.4 per cent with downward revision risk in view of the fallout from the 2019 Novel Coronavirus outbreak (2019-nCoV),” the research firm said.

Meanwhile, AxiCorp's chief market strategist Stephen Innes said sentiment in the forex market would continue to be weighed by 2019-nCoV.

"The market remains extremely concerned about an escalation of cases outside of China, which could continue to hold back risk until there's a definitive sign the coronavirus transmission has slowed.

"The uncertainty about renewed/secondary outbreaks becomes obsolete,” he said in a note today. The ringgit was also higher against other major currencies.

It rose against the Singapore dollar to 2.9816/9863 from 2.9848/9874 on Monday and appreciated vis-a-vis the Japanese yen to 3.7695/7750 from 3.7771/7805.

The local currency strengthened against the British pound to 5.3456/3524 from yesterday's 5.3508/3563 and improved versus the euro to 4.5159/5230 from 4.5384/5421 previously. - Bernama

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

   

Next In Business News

Geely's Volvo Cars sets IPO price range, seeking up to US$23bil valuation
Inari signs MoU with a private equity fund in China to expand OSAT business
ES Ceramic posts strong Q1 growth
Southern Cable bags RM18.5mil TNB contract
Sunway Malls to launch Sunway eMall.com to boost presence
MIDA, MEDEF ink MoU on collaborative efforts
Car sales revved up in September as curbs lifted
German-based H&R to invest RM200mil in speciality plant in Perak
IOI Investment offers to purchase US$600m debt notes
Straits Energy Resources unit to acquire RM14.5mil oil tanker

Others Also Read


Vouchers