Thailand
Ringgit inches up against US$ on better Malaysia growth forecast
KUALA LUMPUR: The ringgit opened slightly higher against the US dollar early Friday due to local factors following reports that the World Bank has predicted Malaysia would sustain growth and achieve high-income status between 2020 and 2024.
At 9 am (0100 gmt), the local currency stood at 4.1430/1480 against 4.1450/1490 recorded at Thursday’s closing.
A dealer said the World Bank projects Malaysia’s economy to grow at 4.9 per cent due to strong growth in private consumption, which shows the country’s sound economic foundation.
However, as an emerging market, the ringgit’s performance is influenced by external factors.
“Oil prices, trade tensions and the US economy are the three major influences on our currency at the moment,” she told Bernama.
Benchmark Brent crude fell from US$86.13 per barrel at close yesterday to US$84.94 at 9am Friday.
Meanwhile, the ringgit was traded mostly lower against other major currencies.
It increased against the Singapore dollar to 2.9993/3.0036 from 3.0023/0059 on Thursday and slid versus the Japanese yen to 3.6326/6380 from Thursday’s 3.6252/6296.
The local note went down against the euro to 4.7690/7764 from 4.7647/7705 on Thursday, and fell against the British pound to 5.3958/4040 from 5.3802/3871 on Thursday, according to Bernama
Meanwhile, AmBank Research said the key focus for Friday includes the US September labour market data, where it expects unemployment rate to be at 3.8%, in-line with market expectations while wage to grow by 2.8%.
The Reserve Bank of India’s monetary policy committee meeting is expected to institute a 25bps hike to 6.75%.
Meanwhile, Malaysia’s August trade data will release where exports are expected to grow around 5.0% and imports 9.4%.
“Hence, we believe markets may take the wait-and-see approach. On that note, we foresee the ringgit to trade between our support level of 4.1381 and 4.1406 while our resistance is pinned at 4.1487 and 4.1510,” it said.
Source: https://www.thestar.com.my/business/business-news/2018/10/05/ringgit-inches-up-against-us$/#2vL3uIs7TBFuFvvl.99