KUALA LUMPUR – The ringgit rebounded to open slightly higher against the US dollar on positive sentiment ahead of the release of Malaysia’s advanced second quarter of 2024 (Q2 2024) gross domestic product (GDP) estimates today.
The Statistics Department (DoSM) is scheduled to release the Q2 2024 GDP estimate data in the afternoon.
At 8am, the ringgit inched up to 4.6665/6710 against the greenback from yesterday’s close of 4.6680/6710.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the numbers are expected to come in better than the 4.2% growth recorded during Q1 2024.
“If the numbers turn out to be much better than Q1 GDP, it will be ringgit-positive for today,” he told Bernama.
Yesterday, AmBank Group projected Q2 2024 GDP to register a growth of 5.3% year-on-year amid sustained domestic demand and better exports.
Afzanizam also noted there is optimism that the local note could stage a further appreciation towards the end of the year in light of the potential US Federal Reserve rate cut.
Meanwhile, the ringgit traded higher against a basket of major currencies.
The local currency strengthened versus the Japanese yen to 2.9685/9718 from 2.9827/9849 at yesterday’s close, gained against the British pound to 6.0413/0471 from 6.0628/0667, and improved vis-a-vis the euro to 5.0856/0905 from 5.1021/1054 previously.
The ringgit is also mostly higher against Asean currencies.
It rose against the Singapore dollar to 3.4716/4754 from 3.4807/4832 at yesterday’s close, inched up versus the Indonesian rupiah to 288.8/289.2 from 288.9/289.2, and appreciated vis-a-vis the Thai baht to 12.8927/9119 from 12.9750/9887.
It was flat against the Philippine peso at 8.01/8.02 from 8.01/8.02 yesterday. – July 19, 2024