KUALA LUMPUR: The ringgit continues to strengthen against the US dollar and ASEAN currencies ahead of Malaysia’s 2024 gross domestic product (GDP) data release today, said an analyst.
At 8 am, the ringgit surged to 4.4325/4555 versus the US dollar versus Thursday’s close of 4.4535/4600.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said Malaysia’s fourth-quarter (4Q) growth is expected at 4.8 per cent and full-year 2024 growth is projected at 5.1 per cent, suggesting that the economy has been growing at a decent rate last year.
"Perhaps, this would motivate the central bank to keep the overnight policy rate steady at 3.00 per cent, which would support the ringgit, given that its counterparts in ASEAN have begun to ease its monetary policies,” he told Bernama.
Meanwhile, Mohd Afzanizam said the US Dollar Index (DXY) fell 0.58 per cent to 107.313 points while equities and bond markets rally also bolstered the ringgit.
The ringgit is poised to have a good start today, and possibly attempt to pierce its immediate support level of RM4.45, he said.
Meanwhile, the ringgit traded lower against a basket of major currencies but appreciated versus the euro to 4.6373/6613 from 4.6419/6487 at Thursday’s close.
It depreciated against the Japanese yen to 2.8978/9130 from 2.8917/8961 and slipped vis-à-vis the British pound to 5.5690/5979 from 5.5615/5696 at yesterday's close.
The local note traded higher against ASEAN currencies.
The ringgit rose against the Singapore dollar to 3.2987/3166 from 3.2999/3049 and increased against the Thai baht to 13.1595/2380 from 13.1644/1906 previously.
It also strengthened vis-à-vis the Indonesian rupiah to 270.9/272.4 from 272.1/272.7 and climbed against the Philippine peso to 7.63/7.68 from 7.67/7.68 at yesterday's close. - Bernama
