Ringgit Breaks Positive Record for 6 Months, Best Achievement in the Asian Region!

thecekodok


The ringgit rose to its highest level in six months against the US dollar and it was the main Asian currency that performed best on Friday. The boost to the local currency if lower US inflation continues to support the Fed's mission of implementing interest rate cuts.


Exactly at 10.40 am, the ringgit was in the position of 4.6680 versus USD after strengthening as much as 0.36% since it opened in early local trading.


Bank Muamalat Malaysia Chief Economist Dr Afzanizam said that US headline and core inflation declined more than expected at 3.0% and 3.3% in June versus forecasts of 3.1% and 3.4%.


This figure continues to strengthen expectations of a reduction in US benefit rates that is expected to take effect in September.


He also said that Bank Negara Malaysia's decision to maintain the overnight base rate (OPR) at 3% provided support to the ringgit because it reduced the difference in the benefit rate with the US Federal Funds Rate.



Meanwhile, the ringgit is traded mostly higher than other major currencies.


It was weaker against the Japanese yen to 2.9343/2.9378 from its overnight close of 2.9003/2.9030, but strengthened against the euro to 5.0752/5.0806 from 5.0819/5.0862 overnight and increased its value against the British pound to 6.0285/6.0375. previously to 6.0335/6.0387.


Likewise, the ringgit generally increases compared to Asean currencies.


It rose versus the Singapore dollar to 3.4755/3.4795 from 3.4774/3.4807 overnight and strengthened versus the Indonesian rupiah to 288.2/288.7 from 289.2/289.7 previously.


The local unit increased versus the Philippine peso to 8.01/8.03 from 8.03/8.05 overnight but fell versus the Thai baht to 12.9199/12.9391 from 12.9184/12.9341.

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