Malaysian Ringgit Strengthens Against US Dollar and Major Currencies
The Malaysian ringgit opened higher against the US dollar and other major currencies on Monday, supported by strong economic data from Malaysia.
According to Dr. Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, the ringgit's strength is likely to continue in the near term due to positive macroeconomic indicators, including July's export figures which may indicate higher economic growth in the second half of the year.
The local currency edged up to 4.0360/0410 against the greenback from Friday's close of 4.0365/0405, and traded higher against a basket of major currencies, including the Japanese yen, British pound, and euro.
However, Dr. Afzanizam cautioned that market participants would focus on long-term US Treasury yields, noting that efforts to directly bring down interest rates could face challenges as US government debt has surpassed $40 trillion.