Abstract:The Malaysian ringgit continued its upward trajectory against the US dollar at the market's opening today, breaking past the RM4.14 level for the first time since November 2021.
The Malaysian ringgit continued its upward trajectory against the US dollar at the market's opening today, breaking past the RM4.14 level for the first time since November 2021. This rise was largely attributed to stronger-than-expected local economic performance, a recent interest rate cut in the United States, and growing concerns about the US economic outlook.
As of 8:00 am, the ringgit was trading at 4.1490/1600 against the dollar, marking an improvement from the previous days close of 4.1550/1605. According to Dr. Mohd Afzanizam Abdul Rashid, Chief Economist at Bank Muamalat Malaysia Bhd, the strengthening of the ringgit was driven by key economic indicators, including a decline in the US Conference Board Consumer Confidence Index, which dropped more sharply than anticipated, landing at 98.7 points. This decline suggested growing apprehension among American consumers, who contribute significantly to the US economy.
The fall in consumer confidence led to a 0.49 percent drop in the US Dollar Index (DXY), which stood at 100.360 points. Dr. Afzanizam noted that this weakening of the dollar contributed to the ringgit‘s upward momentum. He added that the ringgit is likely to remain positive due to the possibility of further interest rate cuts in the US, which could weigh on the dollar’s strength in the near future.
While the ringgit showed strength against the US dollar, it faced challenges against other major currencies. Nonetheless, analysts remain optimistic about its performance as global economic conditions continue to evolve, with Malaysia benefiting from solid local economic fundamentals and ongoing developments in the US financial landscape. The ringgits performance in the coming days will be closely watched as traders and investors assess the broader impact of global monetary policy shifts.
This sustained rally marks a positive sign for Malaysias currency, particularly in a period of economic uncertainty worldwide. However, market watchers continue to advise caution as the ringgit, like other emerging market currencies, remains sensitive to fluctuations in global markets and broader macroeconomic trends.
eToro strengthens its Australian market presence with the $80M AUD acquisition of Spaceship, expanding its long-term savings and superannuation offerings.
In the midst of the 2021 crypto and NFT boom, celebrities flocked to the burgeoning market of digital assets, promoting Non-Fungible Tokens (NFTs) as the next big thing. Fast forward to 2024, the glitter has faded, and many celebrity-endorsed NFTs have lost their allure. The question remains: what happened to celebrities’ NFTs, and why should this serve as a stark reminder for everyday investors?
Updated forex analysis shows USD weakness, focusing on key levels like EUR/USD, DXY bearish trend, and pivot points for major currency pairs.
TradingView and MetaTrader based on ease of use, customization, broker integration, and automation to find the best platform for your trading style.