Strong 2Q GDP Data Lifts Ringgit To Close Higher Vs Greenback

By Zufazlin Baharuddin

KUALA LUMPUR, Aug 16 (Bernama) -- The Malaysian economy’s robust expansion at 5.9 per cent in the second quarter of 2024 (2Q 2024) has driven the ringgit to close higher against the US dollar today.

At 6 pm, the ringgit climbed to 4.4295/4350 versus the greenback from yesterday’s close of 4.4350/4405.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the local note was well supported after the 2Q 2024 gross domestic product (GDP) announcement today, whereby Malaysia’s economic activities accelerated more than expected. 

“However, the appreciation of ringgit has been quite steep and could could lead to some profit taking activities which is quite common and perhaps healthy as the exchange rate would reflect the prevailing economic condition,” he told Bernama.

Bank Negara Malaysia governor Datuk Seri Abdul Rasheed Ghaffour said the local note has been appreciating of late, with financial market participants expecting imminent policy rate cuts from the United States (US) Federal Reserve, which has softened the US dollar and alleviated pressure on regional currencies including the ringgit. 

With these latest developments, the ringgit has appreciated by 3.1 per cent against the US dollar year-to-date as at Aug 13, 2024. 

At the close, the ringgit traded mostly higher against a basket of major currencies.

It went up versus the Japanese yen to 2.9792/9833 from 3.0092/0132 at yesterday’s close and increased vis-a-vis the euro to 4.8680/8741 from 4.8838/8899 but depreciated against the British pound to 5.7167/7238 from 5.7007/7078 previously.

Meanwhile, the ringgit traded higher against ASEAN currencies.

The local note gained versus the Singapore dollar to 3.3582/3627 from 3.3657/3699 at Thursday’s close and was higher against the Philippine peso at 7.74/7.75 compared with 7.79/7.80 previously.

It also inched up versus the Indonesian rupiah to 282.2/282.7 from 282.5/282.9 yesterday and strengthened vis-a-vis the Thai baht to 12.6445/6656 from 12.6805/7013 previously.

-- BERNAMA