By Karina Imran
KUALA LUMPUR, Aug 24 (Bernama) -- The ringgit opened higher against the US dollar and a basket of major currencies on Monday, supported by Malaysia’s strong economic data, an analyst said.
At 8.05 am, the local currency edged up to 4.0360/0410 against the greenback from Friday’s close of 4.0365/0405.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit was expected to remain well supported in the near term, underpinned by strong macroeconomic data, including July’s export figures, which could point to an upside surprise in economic growth in the second half of the year.
“Last Friday, the ringgit closed 0.16 per cent higher against the US dollar at RM4.0385.
“Perhaps the ringgit could make another attempt to break the RM4.03 level today,” he told Bernama, adding that the local note was likely to trade between RM4.03 and RM4.05 against the US dollar today.
Mohd Afzanizam said market participants would focus on long-term US Treasury yields, noting that efforts to directly bring down market interest rates could face challenges as US government debt has surpassed US$40 trillion.
“Clearly, such intervention would only have a transitory effect, as what really matters is the size of the fiscal deficit,” he said.
He added that investors would also pay close attention to the Jackson Hole Symposium from Aug 27 to 29 for further clues on the US Federal Reserve’s next move at its September meeting.
At the opening, the ringgit traded higher against a basket of major currencies.
It gained against the Japanese yen to 2.5403/5436 from 2.5449/5476 at Friday’s close, strengthened against the British pound to 5.5108/5176 from 5.5118/5173, and rose against the euro to 4.7161/7219 from 4.7227/7274 previously.
The local note traded mixed against regional currencies.
It strengthened against the Singapore dollar to 3.1805/1846 from 3.1809/1843 on Friday and edged up against the Indonesian rupiah to 228.0/228.4 from 228.1/228.4.
However, it was flat against the Philippine peso at 6.54/6.55 and edged lower against the Thai baht to 12.3675/3881 from 12.3474/3638 at the previous close.
-- BERNAMA