Summary Ringgit ends on stronger note vs US dollar | The Star www.thestar.com.my
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The Malaysian ringgit gained strength against the US dollar, driven by a combination of factors including China's support, higher US economic growth, moderating US inflation, and rising oil prices.
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Slide Presentation (7 slides)
Key Points
- The ringgit closed the week stronger against the US dollar, buoyed by positive sentiment that China will continue to support its economy along with other regional currencies
- The better-than-expected United States (US) gross domestic product (GDP) growth in the final quarter of last year also seemed to have a positive effect on the ringgit
- Domestic factors have been supporting the ringgit, including higher oil prices and steady demand in the local stock market
- The ringgit was traded higher against a basket of major currencies, including the British pound, euro, and Japanese yen
- The local note was traded mixed higher against Asean currencies, gaining against the Singapore dollar but lower versus the Thai baht
Summaries
19 word summary
Ringgit strengthened against US dollar, boosted by China's support, higher US GDP, moderating US inflation, and rising oil prices.
46 word summary
The ringgit closed stronger against the US dollar, buoyed by China's economic support and better US GDP growth. Moderating US inflation and higher oil prices also supported the ringgit, which traded higher against major currencies but mixed against ASEAN peers. The market was closed for Thaipusam.
104 word summary
The ringgit closed the week stronger against the US dollar, buoyed by positive sentiment from China's commitment to supporting its economy and better-than-expected US GDP growth. The ringgit's strength was also attributed to moderating US inflation, which supports the case for rate cuts, despite robust US economic data. Domestic factors, including higher oil prices and steady demand in the local stock market, have also been supporting the ringgit. The local note traded higher against a basket of major currencies, including the British pound, euro, and Japanese yen, as well as mixed against ASEAN currencies. The market was closed on Thursday for the Thaipusam festival.
345 word summary
Ringgit Ends on Stronger Note vs US Dollar
The ringgit closed the week stronger against the US dollar, buoyed by positive sentiment that China will continue to support its economy along with other regional currencies. At 6 pm, the ringgit marginally rose to 4.7275/7325 against the greenback compared with Wednesday's close of 4.7280/7350.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid attributed the ringgit's strength to China's commitment to supporting its economy, as well as the better-than-expected United States (US) gross domestic product (GDP) growth in the final quarter of last year. The real GDP of the US expanded at an annualized rate of 3.3% in the fourth quarter, according to the US Bureau of Economic Analysis (BEA).
SPI Asset Management managing director Stephen Innes noted that the ringgit has been recovering its losses as market attention shifts to the softer US inflation figures preceding tonight's US Personal Consumption Expenditures (PCE) price index release. Innes said the trading reflects a mixed sentiment as traders navigate between conflicting narratives: the robust US economic data, which diminishes expectations for near-term rate cuts, and the moderating US inflation, which supports the case for rate cuts. This has created a stalemate in the market.
Domestic factors have also been supporting the ringgit, including higher oil prices and steady demand in the local stock market, which has sustained gains over the 1,500 points level.
The ringgit was traded higher against a basket of major currencies. It appreciated vis-a-vis the British pound to 6.0120/0183 from 6.0343/0433 and advanced versus the euro to 5.1279/1333 from 5.1540/1616 at Wednesday's close. It also rose against the Japanese yen to 3.1988/2024 from 3.2043/2093 previously.
The local note was traded mixed higher against ASEAN currencies. It gained against the Singapore dollar at 3.5267/5307 from 3.5331/5386 but was lower versus the Thai baht to 13.2679/2879 from 13.2493/2745 at Wednesday's close. The local note strengthened against the Indonesian rupiah to 298.7/299.1 from 300.9/301.4 but traded flat against the Philippine peso at 8.39/8.41 previously.
The market was closed on Thursday (Jan 25) for the Thaipusam festival.