KUALA LUMPUR: The ringgit opened positively against the US dollar on Friday due to subdued demand for the USD due to weaker United States economic data.
The ringgit appreciated against the dollar to 4.7000/7060 at 9:01 am compared to Thursday’s close of 4.7020/7070.
According to Dr Mohd Afzanizam Abdul Rashid, the Bank Muamalat Malaysia Bhd chief economist, the second estimate of US gross domestic product (GDP) in the first quarter (Q1) of 2024 was lower than the first estimate of 1 .6%, at an annualized rate of 1.3% quarterly.
The primary driver of growth, personal consumption expenditure (PCE), also fell to 2.0 per cent from the initial estimate of 2.5 per cent.
The US dollar index (DXY) dropped below 105 points, while the 2-year and 10-year US Treasury note yields fell five and seven basis points to 4.92 per cent and 4.55 per cent, respectively, resulting in a drop in the bid for the dollar.
“The latest GDP prints seem to have reinvigorated the view that the US Federal Reserve (Fed) should cut rate this year to sustain the GDP within its long-term growth of 1.8 per cent,” Mohd Afzanizam told Bernama.
Meanwhile, the ringgit traded lower against a basket of major currencies.
The local currency fell to 5.0906/0971 against the euro from 5.0838/0892 at Thursday’s close, against the British pound it fell to 5.9826/9903 from 5.9767/9831 and against the Japanese yen it dropped to 2 .9974/3.0015 compared to yesterday’s close of 2.9959/9992. The ringgit performed mixed against ASEAN currencies.
It fell against the Thai baht to 12.8125/8334 from 12.7727/7908 at Thursday’s close and dropped against the Singapore dollar to 3.4812/4859 from 3.4791/4833.
The ringgit was up 288.9/289.4 against the Indonesian rupiah from 289.0/289.4 yesterday and was unchanged against the Philippine peso at 8.02/8.04 from 8.02/8.03 previously.
