Optimism over AI-related investments and expectations of sustained domestic growth supported the local currency, says analyst.
Key takeaways
The Malaysian ringgit strengthened against major currencies, including the US dollar, as analysts attribute this resilience to solid domestic economic fundamentals. Future currency stability may depend on potential policy rate normalization and external geopolitical factors.
- The ringgit rose to 4.0745/4.0790 against the US dollar from the previous close of 4.0865/4.0900.
- The currency also strengthened against the British pound, Japanese yen, euro, and Singapore dollar.
- Bank Muamalat's chief economist noted that domestic fundamentals are buffering the currency against external uncertainties.
Summarised automatically by AI from the original article by Free Malaysia Today. AI can make mistakes, so check the original for details.
KUALA LUMPUR: The ringgit rebounded to close higher against the US dollar today amid confidence in Malaysia’s economic fundamentals, supported by optimism over artificial intelligence (AI)-related investments and expectations of sustained domestic growth, an analyst said.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said that while the US dollar remains firm ahead of the US Federal Reserve’s monetary policy decision, the ringgit’s resilience suggests that domestic fundamentals may be providing an important buffer against external uncertainties.
“Looking ahead, expectations surrounding the possible normalisation of the overnight policy rate (OPR) could lend further support to the local currency, although the near-term direction will remain sensitive to developments in US monetary policy and geopolitical risks,” he told Bernama.
