KUALA LUMPUR, Sept 9 — The ringgit ended higher against the US dollar on Friday as sentiment improved thanks to Malaysia’s manufacturing sales value which grew by 23.8 per cent to RM148.4 billion in July and a stronger Industrial Production Index (IPI) data, said a dealer.
At 6pm, the local currency rose to 4.4965/4990 against the greenback from Thursday’s close of 4.5010/5040.
The dealer said Malaysia’s manufacturing sales value and IPI data as announced by the Department of Statistics Malaysia (DOSM) today boosted the optimism in the market.
According to DOSM, Malaysia’s manufacturing sales value in July 2022 grew by 23.8 per cent to RM148.4 billion, driven by among others; the electrical and electronics (E&E) products subsector, petroleum, chemical, rubber and plastics products subsector.
The department said IPI increased 12.5 per cent in July 2022 compared to a year earlier — the stronger performance was driven by the manufacturing, electricity and mining sectors, which recorded growth of 14.9 per cent, 13.2 per cent and 3.2 per cent respectively.
Meanwhile, ActivTrades trader Dyogenes Rodrigues Diniz said the US dollar failed to break above yesterday’s high despite the United States (US) Federal Reserve (Fed) chairman Jerome Powell reiterating his commitment to maintaining price stability and containing inflation.
“When unemployment is under control and inflation is high (as is currently the case), the natural course of action is to raise interest rates to contain the rise in prices. Therefore, the US macroeconomic scenario still points to higher interest rates,” Diniz said in a note today.
The ringgit was traded lower against a basket of major currencies.
The local unit decreased against the Singapore dollar to 3.2189/2209 from Thursday’s close of 3.2015/2041, weakened against the British pound at 5.2249/2278 from 5.1730/1764, eased against the euro to 4.5361/5386 from 4.4996/5026 and depreciated against the Japanese yen to 3.1670/1690 from 3.1285/1308 yesterday.
— Bernama
