Ringgit extends gain against US dollar at close, climbs to 4.2000

Ringgit extends gain against US dollar at close, climbs to 4.2000


KUALA LUMPUR, Sept 23 — The ringgit closed marginally higher against the US dollar today as a lower domestic inflation rate helped to extend its recent gains, an analyst said.

At 6pm, the local currency climbed to 4.2000/2060 against the greenback, compared to last week’s close of 4.2005/2070.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid noted that Malaysia’s latest consumer price index (CPI) print for August 2024 came in at 1.9 per cent, lower than the 2.0 per cent rate for three consecutive months before August. He said this indicated strong economic growth in Malaysia, with inflation remaining under control. Therefore, it is unlikely that Bank Negara Malaysia (BNM) will adopt the same easing measures as the US Federal Reserve (Fed) and other major central banks, he added.

However, Mohd Afzanizam said BNM remains cautious about potential inflationary risks, particularly since RON95 fuel subsidies have not yet been rationalised. “From a foreign investor’s perspective, ringgit-denominated assets are attractive, which should support the ringgit against the US dollar,” he told Bernama.

MIDF Amanah Investment Bank Bhd noted that the ringgit closed at its strongest level in two and a half years last week. In its weekly fund flow report, it said the Malaysian ringgit strengthened by 2.3 per cent week-on-week against the US dollar, closing at RM4.204, the strongest level since March 2022.

Meanwhile, the ringgit was traded mostly higher against a basket of major currencies.

It gained versus the euro to 4.6645/6712 from Friday’s closing of 4.6878/6950 and was higher against the British pound at 5.5805/5885 from 5.5841/5928 but weakened vis-a-vis the Japanese yen to 2.9238/9282 from 2.9182/9229.

The local note traded mostly higher against ASEAN currencies, except for the Thai baht, going down to 12.7203/7451 from 12.7026/7288.

It edged up against the Singapore dollar to 3.2503/2552 from 3.2507/2559 at Friday’s close, was firmer against the Philippine peso at 7.50/7.52 from 7.55/7.56 and gained versus the Indonesian rupiah to 276.1/276.7 from 277.2/277.8 previously. — Bernama



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