Ringgit Strengthens Against Dollar on Strong Malaysian Economic Data

The Malaysian ringgit opened higher against the US dollar on Monday, following strong economic data from Malaysia. At 8:05 am, the local currency rose to 4.0360/0410 against the greenback from Friday's close of 4.0365/0405.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid attributed this increase to the country's strong macroeconomic data, including July's export figures, which could indicate an upside surprise in economic growth in the second half of the year.

Afzanizam predicted that the ringgit would remain well-supported in the near term, underpinned by these strong economic indicators. He also noted that market participants would focus on long-term US Treasury yields, as efforts to bring down interest rates may face challenges due to high government debt levels exceeding $40 trillion.