By Abdul Hamid A Rahman
KUALA LUMPUR, Aug 16 (Bernama) -- The ringgit opened lower against the greenback as traders adopted a cautious stance and adjusted their positions due to anticipated pre-announcement volatility ahead of Malaysia’s second quarter (2Q) 2024 gross domestic product (GDP) data today.
At 8.02 am, the ringgit depreciated to 4.4515/4720 against the US dollar from yesterday’s close of 4.4350/4405.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said consensus estimates are that Malaysia’s GDP growth is expected to come in at 5.8 per cent.
“If the figure surprises on the upside, it might boost the ringgit’s value. Otherwise, traders may lean towards caution,” he told Bernama.
He said that, consequently, the ringgit could range between RM4.43 and RM4.45 against the US dollar today.
On the United States (US) front, Mohd Afzanizam said that there seems to be a risk-on mode with US data points being better than expected last night.
“US retail sales grew 1.0 per cent month-on-month in July, against consensus estimates of a 0.2 per cent decline, while initial jobless claims fell to 227,000 last week from 234,000.
“While the interest rate cut thesis still holds, there is increasing speculation that a 25 basis points cut will be sufficient in the next Federal Open Market Committee (FOMC) meeting in September, with another 25 basis points cut in December, making a total of 50 basis points this year,” he said.
As a result, Mohd Afzanizam said that the two-year US treasury yields jumped 13 basis points to 4.09 per cent, while the US Dollar Index (DXY) gained 0.40 per cent to 102.977 points.
At the opening, the ringgit traded mostly lower against a basket of major currencies.
It depreciated against the British pound to 5.7246/7510 from 5.7007/7078 and was lower against the Euro at 4.8851/9076 from 4.8838/8899 at yesterday’s close.
However, the ringgit rose against the Japanese yen to 2.9844/9983 from 3.0092/0132.
The local note traded lower against ASEAN currencies.
It declined versus the Singapore dollar to 3.3667/3825 from 3.3657/3699, was lower against the Philippine peso at 7.82/7.86 compared with 7.79/7.80 and shaved versus the Indonesian rupiah to 283.5/284.9 from 282.5/282.9 yesterday.
But it was unchanged against the Thai baht at 12.6805/7502.
-- BERNAMA
BERNAMA provides up-to-date authentic and comprehensive news and information which are disseminated via BERNAMA Wires; www.bernama.com; BERNAMA TV on Astro 502, unifi TV 631 and MYTV 121 channels and BERNAMA Radio on FM93.9 (Klang Valley), FM107.5 (Johor Bahru), FM107.9 (Kota Kinabalu) and FM100.9 (Kuching) frequencies.
Follow us on social media :
Facebook : @bernamaofficial, @bernamatv, @bernamaradio
Twitter : @bernama.com, @BernamaTV, @bernamaradio
Instagram : @bernamaofficial, @bernamatvofficial, @bernamaradioofficial
TikTok : @bernamaofficial
