The ringgit opened higher against the US dollar and Asean currencies on Monday, boosted by Malaysia's stronger-than-expected gross domestic product (GDP) growth in the fourth quarter (Q4) of 2024.
At 10.00am, the ringgit was at 4.4230, up 0.20% against the US dollar from its close of 4.4310 at the end of last Friday.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid stressed that Malaysia's fourth-quarter 2024 GDP growth exceeded initial estimates and reflected the economy's resilience.
He added that last year's fiscal deficit was lower at RM79.2 billion or 4.1% of GDP compared to the government's estimate of RM84.3 billion or 4.3%.
Fiscal consolidation measures have shown encouraging results that could be credit positive from the perspective of credit rating agencies.
Given this development, Mohd Afzanizam predicted that the ringgit could break through the immediate support level of 4.43.
He also noted that signs of weaker consumer spending in the United States (US) could provide further support to the ringgit.
The slowdown may prompt the US Federal Reserve (Fed) to be more concerned about the risks arising in consumer spending.
The ringgit was also mostly traded higher against major currencies.
It appreciated against the euro to 4.6425/6514 from 4.6437/6515 at Friday's close. It also strengthened against the British pound to 5.5708/5814 from 5.5769/5863 but depreciated against the Japanese yen to 2.9124/9183 from 2.9048/9099.
Against Asean currencies, the local currency appreciated broadly.
It rose to 3.3041/3109 against the Singapore dollar from 3.3055/3113 and strengthened against the Thai baht to 13.1152/1485 from 13.1761/2059.
The ringgit also rose against the Indonesian rupiah to 272.3/273.0 from 272.6/273.2 and rose against the Philippine peso to 7.65/7.67 from 7.66/7.68 at Friday's close.
