Ringgit Rises on Strong Economic Data, Eyes Fed's Next Move
The Malaysian ringgit opened higher against the US dollar on Monday due to strong economic data. According to Bank Muamalat Malaysia Bhd's chief economist, Mohd Afzanizam Abdul Rashid, the ringgit is expected to remain well-supported in the near term.
At 8:05 am, the local currency edged up to 4.0360/0410 against the greenback from Friday's close of 4.0365/0405. Mohd Afzanizam said that Malaysia's strong macroeconomic data, including July's export figures, could point to an upside surprise in economic growth in the second half of the year.
The ringgit gained against major currencies such as the Japanese yen, British pound, and euro. It also strengthened against regional currencies like the Singapore dollar and Indonesian rupiah.
However, market participants are cautious about US government debt surpassing $40 trillion, which could make it challenging for the US Federal Reserve to directly bring down interest rates. Investors will be paying close attention to the Jackson Hole Symposium from August 27-29 for further clues on the Fed's next move at its September meeting.