Ringgit Closes Higher Ahead Of Q4 Gdp Announcement

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KUALA LUMPUR: The ringgit rebounded to close higher against the US dollar ahead of the fourth quarter (Q4) 2023 gross domestic product (GDP) announcement tomorrow, said an analyst.
SPI Asset Management managing director Stephen Innes said the ringgit also traded marginally stronger after the front end of US yields fell a touch following a hotter-than-expected inflation reading yesterday.
“However, with the US 10-year yield staying elevated, the dollar could remain supported, thus limiting ringgit gains,” he said.
Meanwhile, Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the local currency was slightly better against the US dollar, gaining about 0.1% today.
He noted that the effect of global monetary tightening has gradually become more pronounced and expects the foreign exchange markets to be guarded in the near term.
“Today’s data releases showed that the Japanese and UK economies are already in a technical recession.
“The latest data suggests that the Bank of Japan is likely to remain cautious about removing excessive monetary accommodation,” he said.
On a similar note, Afzanizam said the restrictive monetary policy stance by the Bank of England has taken a negative toll on the UK economy.
“The UK government is set to announce its budget on March 6 and there could be measures to cut taxes to prop up the economy,” he added.
At 6pm, the ringgit rose to 4.7800/4.7850 against the greenback compared to yesterday’s close of 4.7845/4.7885.
Back home, the ringgit was traded lower against a basket of major currencies.
The local note weakened vis-a-vis the Japanese yen to 3.1860/3.1896 from 3.1757/3.1786 at yesterday’s close, fell against the British pound to 6.0008/6.0071 from 5.9983/6.0033, and slid versus the euro to 5.1304/5.1357 from 5.1185/5.1227 previously.
Meanwhile, the ringgit was traded mixed versus other Asean currencies.
It was higher against the Thai baht at 13.2084/13.2292 compared to 13.2366/13.2535 at yesterday’s close and improved versus the Indonesian rupiah to 305.7/306 from 306.5/307 previously.
The local note was easier against the Philippine peso at 8.53/8.54 compared to 8.52/8.54 at yesterday’s close and slipped against the Singapore dollar to 3.5481/3.5521 compared to 3.5441/3.5473. - FMT

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