Ringgit Hits Fresh 2018 High Of 3.9540 Against US Dollar, Extends Uptrend

 

By Harizah Hanim Mohamed

KUALA LUMPUR, Jan 27 (Bernama) -- The ringgit traded at 3.9540 against the US dollar at the lunch break, marking a fresh high since May 15, 2018, when it last stood at the same level, and extending its run of fresh highs.

Bank Muamalat Malaysia chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama that, based on technical chart analysis, the new support level for the local currency is located at RM3.8722.

Confidence in Malaysia’s economic system, aligned with the nation’s improving economic indicators, has bolstered the currency’s appreciation amid intensifying talks of possible currency intervention by the United States and Japanese authorities.

“However, the rapid pace of the ringgit’s appreciation could have adverse effects, particularly on export-oriented industries,” he cautioned.

Earlier today, Prime Minister Datuk Seri Anwar Ibrahim said the ringgit’s strength has not hindered trade flows, and the government will continue to strengthen the economy, manage key economic policies, curb the deficit, and attract investment.

“Normally, a stronger ringgit brings positive effects, although there are minor concerns because it relates to the export and import of goods.

“But overall, no country wants its currency to weaken or fall below its intrinsic value,” he told the Dewan Rakyat today.

Anwar, who is also the Finance Minister, was responding to a supplementary question from Datuk Dr Ku Abd Rahman Ku Ismail (PN-Kubang Pasu) on the factors behind the ringgit’s gains against the US dollar and its impact on the country’s exports and imports.

At 8 am today, the ringgit was traded at 3.9650/9750 against the US dollar, compared with 3.9615/9670 at Monday’s close.

-- BERNAMA