Kuala Lumpur: The ringgit opened higher against the US dollar and Asean currencies due to Malaysia’s stronger gross domestic product (GDP) growth in the final quarter (Q4) of 2024, said an analyst.
At 8am, the ringgit surged to 4.4265/4.4350 versus the US dollar compared to Friday’s close of 4.4310/4.4385.
AdvertisementBank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said Malaysia’s GDP growth in Q4 2024 was higher than advanced estimates, suggesting that the Malaysian economy remained resilient.
“The fiscal deficits for last year were lower at RM79.2 billion or 4.1% of GDP versus the government estimates of RM84.3 billion or 4.3% of GDP.
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Therefore, Afzanizam projected that the ringgit could pierce the immediate support level of 4.43 today in light of the latest development.
AdvertisementHe also noted that the ringgit is poised for a positive start today amid signs of weaker consumer spending in the US.
This would result in the US Federal Reserve (Fed) being more attentive to the emerging risks of a slowdown in consumer spending.
Advertisement“The latest retail sales number in the US came in lower than expected to -0.9% month-on-month in January against consensus estimates of -0.1%,” he added.
Meanwhile, the ringgit traded mostly higher against major currencies.
It appreciated against the euro to 4.6425/4.6514 from 4.6437/4.6515 at Friday’s close and advanced versus the British pound to 5.5708/5.5814 from 5.5769/5.5863, but it slipped vis-a-vis the Japanese yen to 2.9124/2.9183 from 2.9048/2.9099 at Friday’s close.
The local note traded higher against Asean currencies.
The ringgit rose against the Singapore dollar to 3.3041/3.3109 from 3.3055/3.3113 and increased against the Thai baht to 13.1152/13.1485 from 13.1761/13.2059 previously.
It also strengthened vis-a-vis the Indonesian rupiah to 272.3/273.0 from 272.6/273.2 and climbed against the Philippine peso to 7.65/7.67 from 7.66/7.68 at Friday’s close.