Ringgit extends gains against US dollar

The Malaysian ringgit edged up against the US dollar, closing at 4.2000/2060, buoyed by a lower inflation rate of 1.9% in August.

This decline from the previous 2.0% indicated stable economic growth, as noted by Bank Muamalat’s chief economist, Mohd Afzanizam Abdul Rashid who spoke to Bernama. He highlighted that while Bank Negara Malaysia might refrain from easing measures like the US Federal Reserve, concerns about inflation linger, especially with RON95 fuel subsidies unaddressed.

Ringgit extends gains

Despite this, foreign investors find ringgit-denominated assets appealing, bolstering the currency’s strength amid global uncertainties. The outlook for Malaysia remains cautiously optimistic.

Meanwhile, the dollar index (DXY00) was up by +0.25% yesterday against other currencies.  The dollar is gaining on Eurozone economic concerns undercutting the euro after Eurozone Sep manufacturing and composite PMIs contracted more than expected.  The dollar also garnered some support from higher T-note yields.

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