Ringgit ends firmer against US dollar

KUALA LUMPUR: The ringgit ended the week firmer against the US dollar today after China continues to set the tone for intervention amid growing concerns about its economy, an analyst said.

At 6 pm, the local note rose to 4.6465/6510 against the US dollar from 4.6535/6550 at Thursday’s close.

SPI Asset Management managing director Stephen Innes said the local currency and regional peers gained support as the People’s Bank of China (PBOC) had announced plans to carry out policy measures to stop the rapid depreciation of the yuan.

“The announcement by PBOC offered regional currencies some breathing room,” he told BK.

According to the Department of Statistics Malaysia, the country’s economy expanded by 2.9 per cent in the second quarter of 2023 (2Q 2023), bringing the average growth for the first half of the year (1H 2023) to 4.25 per cent.

It said that Malaysia’s economic growth moderated during the quarter, partly due to weaker external demand amidst the global technology cycle, lower commodity production and high base effect from 2Q 2022.

Hence, Innes suggested that the latest data could signal to the government that the local economy could use a pro-growth lift in the absence of a boost from China, which will be perceived as positive for the currency.

The ringgit was traded mostly higher against a basket of major currencies, except against the Japanese yen, where it eased to 3.1926/1959 from 3.1832/1846 on Thursday.

The local unit improved against the euro to 5.0503/0552 from 5.0602/0618 yesterday and appreciated vis-a-vis the British pound to 5.9131/9189 from 5.9211/9230 previously.

Meanwhile, the local note traded mostly lower against other Asean currencies.

The ringgit inched down vis-a-vis the Singapore dollar to 3.4228/4264 from 3.4212/4228 on Thursday and marginally lower versus the Thai baht to 13.1331/1510 from 13.1306/1423 previously.

It depreciated against the Philippine peso to 8.27/8.28 from 8.19/8.20 yesterday but improved versus the Indonesian rupiah to 303.9/304.2 from 304.4/304.7 previously. – BK