Malaysia
Singapore
Philippines
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The Malaysian ringgit continued its upward trajectory on Monday, opening stronger against the US dollar as positive sentiment towards the local currency remains intact. By 8:04 AM, the ringgit was trading at 4.1150/1280, improving from Friday’s close of 4.1230/1280. This marks the ringgit’s continued appreciation amid favourable market conditions, according to analysts.
Bank Muamalat Malaysia Bhd’s chief economist, Dr Mohd Afzanizam Abdul Rashid, noted that the ringgit is expected to maintain its strong performance, although some profit-taking might occur due to the recent broad-based appreciation. “The ringgit remains well-supported, and while some traders may lock in profits, the overall outlook remains positive,” Dr Afzanizam said.
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US Data in Focus as Fed Eases Monetary Policy
Globally, mixed signals from the United States have contributed to cautious market sentiment. The Personal Consumption Expenditures (PCE) price index moderated to 2.2% in August, while the core PCE held steady at 2.7%. Despite these figures, the US Federal Reserve is expected to continue its monetary easing strategy through November and December.
“This week’s market focus will be on key US data, including the ISM Index for manufacturing and services, as well as labour market reports such as the Job Openings and Labor Turnover Survey (JOLTS), ADP employment change, and the nonfarm payroll (NFP) figures,” Dr Afzanizam noted.
He highlighted that the ringgit’s immediate support level stands at RM4.0728, with the potential for the currency to move towards that mark in the near term.
Ringgit Outperforms Against Major Currencies
In addition to its strength against the US dollar, the ringgit traded firmly against a basket of major currencies:
- Japanese yen: Slightly weaker at 2.8833/8926, compared to 2.8804/8841 on Friday.
- Euro: Stronger at 4.5960/6106, improving from 4.6009/6064.
- British pound: Advanced to 5.5063/5237, up from 5.5178/5245 last week.
Ringgit Strengthens Against ASEAN Currencies
The ringgit also demonstrated resilience against ASEAN currencies, posting gains across the board:
- Singapore dollar: Edged higher to 3.2136/2240 from 3.2146/2187.
- Philippine peso: Improved to 7.34/7.37 from 7.35/7.37.
- Indonesian rupiah: Strengthened to 272.0/273.0 from 272.5/273.0.
- Thai baht: Rose to 12.7045/7553, up from 12.7202/7407.
Positive Outlook for Ringgit as Traders Eye US Data
The ringgit’s performance reflects growing confidence in Malaysia’s economic prospects, buoyed by mixed US economic data and a dovish outlook for the US Federal Reserve. While traders keep an eye on US economic indicators, the ringgit remains poised for further gains, supported by favourable domestic factors and a robust performance against key currencies.
As Dr. Afzanizam highlighted, “The ringgit is likely to continue on its positive trend as long as global economic conditions remain favourable and the US Federal Reserve maintains its easing strategy. However, short-term fluctuations may occur depending on upcoming US data and external factors.”
With a solid performance across various currency pairs, the ringgit is set to remain a currency to watch in the coming weeks as markets digest the latest economic indicators from the US and other global players.