Upbeat 2024 GDP Performance Drives Ringgit To End Higher

By Zufazlin Baharuddin

KUALA LUMPUR, Feb 14 (Bernama) -- The Malaysian economy saw significant growth in 2024, boosting the ringgit to end the week higher against the US dollar.

According to Bank Negara Malaysia (BNM), the Malaysian economy grew by 5.1 per cent in 2024, up from 3.6 per cent in 2023, due to continued expansion in domestic demand and a rebound in exports.

At 6 pm, the ringgit climbed 225 percentage-in-points to 4.4310/4385 versus the greenback from Thursday’s close of 4.4535/4600.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the recent development has boosted positive sentiment for the local currency.

“It will motivate BNM to keep the overnight policy rate steady since the central bank would need to ensure that inflation will be within the range of 2.0 per cent to 3.5 per cent.

“Other central banks in the Asian region have started to cut interest rates whereas BNM is keeping it steady. So, it could lure traders and investors to buy the ringgit,” he told Bernama.

Mohd Afzanizam also said the ringgit staged further rebounds against the greenback after Donald Trump ordered a list of reciprocal tariffs to be drawn up.

Meanwhile, the ringgit was traded lower against a basket of major currencies.  

It weakened versus the Japanese yen to 2.9048/9099 from 2.8917/8961 at the close on Thursday, fell against the euro to 4.6437/6515 from 4.6419/6487 and slipped vis-a-vis the British pound to 5.5769/5863 from 5.5615/5696 previously.

The local note was mostly lower against ASEAN currencies.  

The ringgit slid versus the Indonesian rupiah to 272.6/273.2 from 272.1/272.7 at Thursday’s close,  eased against the Thai baht to 13.1761/2059 from 13.1644/1906 and decreased vis-a-vis the Singapore dollar to 3.3055/3113 from 3.2999/3049 previously.

However, it inched up against the Philippine peso to 7.66/7.68 from 7.67/7.68 yesterday.

-- BERNAMA