KUALA LUMPUR – The ringgit has shown continued strength against the greenback at the opening, as prospects of US rate cuts loom, an analyst reported.
At 8am today, the ringgit traded slightly higher at 4.4200/4300 against the US dollar, compared to Monday’s close of 4.4240/4305.
So far this year, the ringgit has made impressive gains, appreciating 4.1% against the US dollar, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama.
“Similarly, the ringgit rose against regional currencies, appreciating 10.5% against the South Korean won, 9.5% against the Indonesian rupiah, 8.6% against the Philippine peso, 7.8% against the Thai baht and 4.4% against the Singapore dollar.
“However, intermittent profit-taking activities may occur as traders might be tempted to cash out some gains,” he said.
Mohd Afzanizam expects the ringgit to linger around RM4.42 to RM4.43 against the US dollar today.
Meanwhile, UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan said the release of the PMI Manufacturing and PMI Services indices, both above 50, has alleviated fears of a US recession.
“Ringgit may open slightly higher as investors shift their investments towards Asia,” he added.
The ringgit traded mostly higher against a basket of major currencies, though it fell against the British pound to 5.6514/6642 from 5.6379/6462 at Monday’s close.
It appreciated against the Japanese yen to 3.0301/0378 from 3.1067/1117 and improved against the euro to 4.8395/8504 from 4.8434/8505 previously.
The local note also traded higher against Asean peers.
It inched up versus the Indonesian rupiah to 273.0/273.7 from 273.2/273.7 on Monday and improved against the Philippine peso to 7.63/7.66 from 7.64/7.66.
It appreciated against the Singapore dollar to 3.3343/3424 from 3.3485/3536 and moved higher against the Thai baht to 12.4405/4789 from 12.5528/5791 previously. – August 6, 2024