The ringgit continued to strengthen towards the US greenback on the opening at the moment, following the decline in the US’ (US) producer value index (PPI) in June, mentioned an analyst.
At 9 am, the native word rose to 4.5425/5480 towards the dollar from 4.5800/5845 at Thursday’s shut.
The US PPI got here in decrease than anticipated at 0.1 per cent year-on-year (y-o-y) in June 2023 towards consensus estimates of 0.4 per cent, whereas core PPI was at 2.4 per cent in June versus consensus estimates of two.6 per cent.
Financial institution Muamalat Malaysia Bhd chief economist and social finance head Dr Mohd Afzanizam Abdul Rashid mentioned the US greenback remained in a bearish mode with the US greenback index (DXY) hovering beneath 100 factors.
“On the similar time, China’s exports fell greater than anticipated to -12.4 per cent y-o-y towards the expectation of -9.5 per cent and imports dropped to -6.8 per cent in contrast with consensus estimates of -4.0 per cent,” he informed Bernama.
In opposition to such a backdrop, he expects the ringgit to prolong its rally because the US Federal Reserve would possibly soften its tone, given the rising disinflationary pattern together with rising issues over world development prospects.
“The rapid assist stage is at present at RM4.5491. Ought to the USD/MYR breach such stage, the following assist stage is situated at RM4.4872,” he famous.
In the meantime, the ringgit was traded larger towards a basket of main currencies.
It rose towards the Japanese yen to three.2998/3040 from 3.3069/3103 at Thursday’s shut and appreciated vis-a-vis the euro to five.0976/1038 from 5.1168/1218 yesterday and gained towards the British pound to 5.9593/5.9665 from 5.9861/9919 beforehand.
The native word was additionally traded larger towards different Asean currencies.
The ringgit went up versus the Singapore greenback to three.4374/4421 from Thursday’s shut of three.4553/4590 and firmed towards the Indonesian rupiah to 303.4/304.0 from 305.9/306.4 beforehand.
It had additionally appreciated towards the Thai baht to 13.1362/1578 from 13.2481/2673 yesterday and climbed towards the Philippines’ peso to eight.34/8.36 from 8.40/8.41 beforehand. — Bernama / pic MUHD AMIN NAHARUL