KUALA LUMPUR, July 23 — The ringgit opened higher against the United States dollar and a basket of other major currencies as market participants awaited Malaysia’s inflation announcement, said an analyst.
At 8am, the ringgit rose to 4.6780/6850 against the greenback from yesterday’s close of 4.6805/6835.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the Statistics Department is expected to announce consumer price index (CPI) data tomorrow to gauge the impact of fuel subsidy rationalisation.
“A stronger-than-expected advance estimate for Malaysia’s gross domestic product (GDP) in the second quarter of 2024 suggests the economy has remained resilient despite concerns about rising living costs.
“This gives the impression Malaysia’s central bank is not about to join the global chorus of monetary easing, as the current policy stance remains supportive to growth,” he told Bernama.
Afzanizam said the ringgit could remain at the prevailing level as global events unfold and market participants await CPI announcements.
On the global front, he observed that a surprise interest rate cut in China suggests the world’s second-largest economy needs support to maintain its 5 per cent growth target this year after its 2Q 2024 GDP slipped to 4.7 per cent.
Meanwhile, United States Vice-President Kamala Harris is gaining support from her Democratic party to contest the presidential election in November.
“The United States Dollar Index fell slightly by 0.08 per cent to 104.314. It remains to be seen whether she will win the presidential race, but for now, it seems dollar-positive,” he said.
Meanwhile, the local note strengthened against a basket of major currencies.
The local currency appreciated versus the Japanese yen to 2.9809/9858 from 2.9869/9892 at yesterday’s close, rose against the British pound to 6.0487/0577 from 6.0514/0553, and improved vis-a-vis the euro to 5.0939/1015 from 5.0971/1003 previously.
The ringgit also rose against most Asean currencies, but was flat against the Philippine peso at 8.01/8.03.
It inched up versus the Indonesian rupiah to 288.3/288.9 from 288.5/288.8, increased vis-a-vis the Thai baht to 12.8746/9021 from 12.8975/9118 previously, and widened against the Singapore dollar to 3.4755/4809 from 3.4804/4829 yesterday.
— Bernama
