Ringgit Rises As Foreign Investors Drive Local Bourse

By Engku Shariful Engku Ab Latif and Zufazlin Baharuddin

KUALA LUMPUR, Aug 29 (Bernama) -- The ringgit continued to open on a better note this morning, benefiting from a spillover effect driven by foreign investors' interest in the local bourse.

At 8 am, the ringgit appreciated to 4.3385/3485 against the greenback, versus Wednesday’s close of 4.3425/3460.

Bank Muamalat Malaysia Bhd's chief economist Dr Mohd Afzanizam Abdul Rashid said robust foreign investor interest in Malaysia’s capital markets has driven up demand for the ringgit, as reflected in yesterday's rally, where the key index closed near a 45-month high at 1,675.24.

Mohd Afzanizam added that market participants are closely monitoring the US economic data, particularly the Personal Consumption Expenditure Price Index (PCE) inflation and the second quarter 2024 US gross domestic product.

He suggested that the USD/MYR pair might be moving towards its immediate support level of RM4.3000, although some profit-taking could occur along the way.

"As a result, the ringgit could range between RM4.3400 and RM4.3500 today," he told Bernama.

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

The local currency climbed against the Japanese yen to 3.0035/0106 from 3.0096/0122 on Wednesday, advanced against the euro to 4.8261/8373 from 4.8362/8401, and gained against the British pound to 5.7233/7365 from 5.7425/7472.

Against ASEAN currencies, the ringgit improved against the Singapore dollar to 3.3281/3360 from 3.3337/3367 at Wednesday’s close, and rose against the Thai baht to 12.7367/7739 from 12.7709/7865.

It also inched higher vis-a-vis the Philippine peso to 7.71/7.74 from 7.72/7.73 on Wednesday, and edged up against the Indonesian rupiah to 281.2/282.1 from 281.5/281.9.

-- BERNAMA