KUALA LUMPUR, Jan 26 — The ringgit closed the week stronger against the US dollar, buoyed by positive sentiment that China will continue to support its economy along with other regional currencies, according to an analyst.
At 6 pm, the ringgit marginally rose to 4.7275/7325 against the greenback compared with Wednesday’s close of 4.7280/7350.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama that besides being supported by China’s commitment, the better-than-expected United States (US) gross domestic product (GDP) growth in the final quarter of last year also seemed to have a positive effect to ringgit.
The real GDP of the US expanded at an annualised rate of 3.3 per cent in the fourth quarter, according to the US Bureau of Economic Analysis (BEA).
Meanwhile, SPI Asset Management managing director Stephen Innes said the ringgit has been recovering its losses as market attention shifts to the softer US inflation figures preceding tonight’s US Personal Consumption Expenditures (PCE) price index release.
“Today’s trading reflects a mixed sentiment as traders navigate between conflicting narratives: the robust US economic data, which diminishes expectations for near-term rate cuts, and the moderating US inflation, which supports the case for rate cuts.
“This has created a stalemate in the market,” said Innes, adding that domestic factors have been supporting the ringgit, including higher oil prices and steady demand in the local stock market, which has sustained gains over the 1,500 points level.
Meanwhile, the ringgit was traded higher against a basket of major currencies.
It appreciated vis-a-vis against the British pound to 6.0120/0183 from 6.0343/0433 and advanced versus the euro to 5.1279/1333 from 5.1540/1616 at Wednesday’s close.
It also rose against the Japanese yen to 3.1988/2024 from 3.2043/2093 previously.
The local note was traded mixed higher against Asean currencies.
It gained against the Singapore dollar at 3.5267/5307 from 3.5331/5386 but was lower versus the Thai baht to 13.2679/2879 from 13.2493/2745 at Wednesday’s close.
The local note strengthened against the Indonesian rupiah to 298.7/299.1 from 300.9/301.4 but traded flat against the Philippine peso at 8.39/8.41 previously.
The market was closed on Thursday (Jan 25) for the Thaipusam festival.
— Bernama
