Ringgit advances as domestic optimism offsets US rate concerns
Bernama
18/11/2024
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said Malaysia's third-quarter economic data indicated the economy was on track for stronger growth this year. - ADOBE STOCK
KUALA LUMPUR: The ringgit extended its gains on Monday, buoyed by optimism over Malaysia's domestic outlook, which offset concerns about the direction of US interest rates.
At 8.03 am, the local currency rose to 4.4680/4780 against the US dollar, up from Friday's close of 4.4715/4780.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said Malaysia's third-quarter economic data indicated the economy was on track for stronger growth this year.
He added that political stability and unwavering appetite for reforms bolstered the nation's appeal as an investment destination.
"At the same time, traders and investors are wary about whether Trump will proceed with his significant tariff and tax cut agenda. Such policies appear inflationary, which could explain why the Fed chairman raised doubts last week about the monetary easing measures.
"As such, we foresee the dollar-ringgit trading in a narrow range as markets navigate the uncertainties until the US President-elect is inaugurated on January 20 next year," he said.
Nevertheless, Mohd Afzanizam noted the ringgit could see a correction, given its oversold position.
On Friday, Bank Negara Malaysia governor Datuk Seri Abdul Rasheed Ghaffour announced a 5.3 per cent gross domestic product growth for the third quarter.
He also welcomed Malaysia's removal from the US currency manipulation watch list, reaffirming the ringgit's market-driven status.
The ringgit traded mostly higher against a basket of major currencies.
It strengthened against the British pound to 5.6368/6494 from 5.6573/6656 at Friday's close and rose vis-a-vis the euro to 4.7066/7171 from 4.7224/7292.
However, it weakened against the Japanese yen to 2.8936/9003 from 2.8774/8818.
The local unit showed mixed performance against ASEAN currencies.
It strengthened against the Philippine peso to 7.60/7.63 from 7.61/7.63, rose against the Indonesian rupiah to 281.4/282.2 from 281.6/282.2, and gained vis-a-vis the Singapore dollar to 3.3284/3361 from 3.3330/3381.
Conversely, it slipped against the Thai baht to 12.8383/8789 from 12.8307/8541.
-- BERNAMA
