KUALA LUMPUR, Aug 12 — The ringgit extended its uptrend against the United States dollar and major currencies at the open today, ahead of Malaysia’s second quarter (Q2) gross domestic product (GDP) data on Friday, said an analyst.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said traders are eyeing Malaysia’s GDP print for monetary policy clues, but with markets heavily focused on trade talks, it may need to significantly exceed expectations to boost ringgit bulls.
At 8am, the local note appreciated to 4.2270/2460 versus the greenback, from yesterday’s close of 4.2320/2360.
Meanwhile, Afzanizam said the ringgit is expected to trade between RM4.23 and RM4.25 against the US dollar today.
He said the US Dollar Index climbed 0.35 per cent to 98.52 points ahead of the US consumer price index (CPI) report tonight. Consensus estimates have pegged the headline and core CPI at a much higher rate of 2.8 per cent and 3 per cent, respectively, in July, up from 2.7 per cent and 2.9 per cent in June.
“Against such a backdrop, the US Federal Reserve is seen to be keeping steady in the upcoming meeting in September,” he told Bernama.
Afzanizam noted that the Reserve Bank of Australia will announce its interest rate decision today, with consensus expecting a 25 basis points cut to 3.6 per cent.
At the open, the ringgit ended firmer against major currencies.
It edged up against the yen to 2.8528/8658 from 2.8657/8686 at the close yesterday, improved against the euro to 4.9097/9317 from 4.9269/9316, and rose versus the British pound to 5.6777/7032 from 5.6933/6987.
The ringgit also trended higher against regional peers.
It strengthened against the Singapore dollar to 3.2841/2999 from 3.2936/2973 and rose against the Thai baht to 13.0198/0884 from 13.0569/0769.
The local currency inched up to 259.6/260.9 against the Indonesian rupiah from 259.9/260.3 previously, and gained against the Philippine peso to 7.41/7.44 from 7.42/7.43.
