The Ringgit depreciated vs USD

Malaysia Currency and Commodities: The Ringgit depreciated by -0.66% to RM4.5002 against the US dollar.

The Ringgit is expected to face continued uncertainty and trade mixed during the first quarter of the year, influenced by market conditions in the United States, according to analysts.

Ringgit deprecated

On Monday, the local currency opened lower at 4.5010/5060 against the US dollar, compared to 4.4990/5030 at last Friday’s close.

Expert says the Ringgit is likely to hover between RM4.50 and RM4.60 against the US dollar in the next one to two months.

Manufacturing PMI: Declined to 48.6, indicating subdued demand.

In air passenger traffic, an increased by 15.8% YoY in November 2024 but dipped slightly by 0.5% MoM is noted.

Brent crude oil

Brent crude oil rose +3.15% to USD76.51 per barrel, while crude palm oil fell -5.54% to RM4,368.00 per tonne.

Weekly Fund Flow Summary (6 January 2025)

Global Economic Highlights

• US Banking Reserves: Fell below USD3 trillion, the lowest since October 2020, with a weekly decline of USD326 billion due to year-end balance sheet adjustments.

• Manufacturing Activity: US ISM Manufacturing Index improved to 49.3 in December 2024, indicating a modest recovery.

• Homelessness in the US: Increased by 18% over the past year, driven by housing costs and inflation.

Global Market Performance

• Top Performers: Indonesia’s JCI (+1.82%), South Korea’s KOSPI (+1.54%), and the Philippines’ PSEi (+1.15%).

• Worst Performers: China’s CSI 300 (-5.17%), Hong Kong’s Hang Seng (-1.64%), and Vietnam’s VSE (-1.61%).

Regional Developments

• United Kingdom: Mortgage approvals dropped to their lowest since August 2024. Manufacturing PMI contracted sharply to 47.0.

• Germany: Unemployment rose by 10,000 in December, signaling resilience despite economic headwinds.

• Japan: Banknote circulation declined for a second consecutive year, reflecting a shift to cashless payments.

• Singapore: Economic growth accelerated to +4.0% in 2024, driven by a strong Q4 performance.

• Hong Kong: Fiscal deficit for 2024 is projected at HKD100 billion due to slower-than-expected growth.

This reflects a mixed start to the new year, with cautious global sentiment amid persistent economic challenges. – Source MIDF

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