Ringgit Up Against Major Currencies, Holds Steady Against Greenback On Strong Trade Data
By Zufazlin Baharuddin
KUALA LUMPUR, Aug 19 (Bernama) -- The ringgit appreciated against major currencies and held firm versus the US dollar at the close on Tuesday as Malaysia posted a stronger trade performance, returning to positive growth in July.
According to the Ministry of Investment, Trade and Industry (MITI), the country’s trade performance rebounded by 3.8 per cent year-on-year (y-o-y) to RM265.92 billion in July, the highest monthly trade value ever.
At 6 pm, the local note made a marginal retreat to 4.2215/2255 against the greenback from yesterday’s close of 4.2200/2240.
MITI said exports in July jumped 6.8 per cent to RM140.45 billion, the highest monthly value since September 2022, while imports edged up by 0.6 per cent to RM125.47 billion.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the latest export print suggests Malaysia’s external sector is still “fairly decent” despite having to contend with US tariffs. “Hence, the case for a strong ringgit going forward remains intact,” he told Bernama.
Meanwhile, he said market players will monitor the US Federal Reserve (Fed) meeting at the Jackson Hole Symposium later this week, with chair Jerome Powell’s speech this Friday in focus.
“Traders and investors appear to lean towards a possible 25 basis points cut in September as signs of a weaker US labour market have become increasingly apparent. Hence, a dovish tilt by the Fed is something that the market wants to hear. Therefore, any deviation from this view could have an impact on the currency market trajectory,” he added.
At the close, the ringgit settled mostly higher against a basket of major currencies.
It strengthened versus the Japanese yen to 2.8572/8601 from Monday’s close of 2.8632/866, gained against the British pound to 5.7066/7120 from 5.7139/7193, but dropped vis-à-vis the euro to 4.9307/9354 from 4.9290/9336.
The ringgit traded higher against other ASEAN currencies.
It gained versus the Singapore dollar to 3.2901/2935 from 3.2902/2936 at Monday’s close and strengthened against the Thai baht to 12.9848/13.0027 from 12.9942/13.0121.
The ringgit also gained vis-à-vis the Philippine peso to 7.39/7.40 from 7.40/7.42 previously and edged up against the Indonesian rupiah to 259.8/260.2 from 260.4/260.9.
-- BERNAMA