Ringgit improves against greenback amid weaker US economic data
KUALA LUMPUR: The ringgit continues to strengthen against the greenback on Thursday, amid weaker United States (US) economic data, an analyst said.
At 8 am, the local currency inched up to 4.2305/2405 against the dollar versus the yesterday's close of 4.2345/2370.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) slid 0.47 per cent to 98.631 points as the US inflation rate came in lower than expected.
The US Consumer Price Index (CPI) came in at 2.4 per cent in May against consensus estimates of 2.5 per cent. The core CPI print was at 2.8 per cent versus 2.9 per cent in the consensus survey.
"The short-term US Treasury fell as hope for interest rate cuts has gained momentum with the two-year yield dropping seven basis points to 3.95 per cent.
"It appears that expectations for rate cuts would be in the spotlight. The current US Federal Reserve (Fed) chairman's term ends next May. US President Donald Trump is likely to appoint a Fed chief who aligns with his agenda, that is, to prescribe further monetary easing," he told Bernama.
On that note, the DXY is likely to linger below 100 points for quite some time, which would benefit emerging market currencies, including the ringgit, he added.
Mohd Afzanizam also expects the ringgit to trade on an upward trend in the range of RM4.22 and RM4.23.
At the opening, the ringgit traded lower against a basket of major currencies.
It depreciated against the Japanese yen to 2.9344/9415 from Wednesday's 2.9187/9207, weakened versus the British pound to 5.7399/7535 from 5.7166/7200 and fell vis-à-vis the euro to 4.8693/8808 from 4.8426/8454 previously.
Meanwhile, the local currency traded mostly lower against its ASEAN peers.
It inched up against the Indonesian rupiah to 260.1/260.8 from 260.4/260.6 at Wednesday's close and was unchanged against the Philippine peso at 7.57/7.59.
However, the local note slid versus the Singapore dollar to 3.2953/3033 from 3.2925/2947 at yesterday's close and declined against the Thai baht to 12.9949/13.0333 from 12.9729/9870 previously.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
34 minutes ago
- New Straits Times
The dollar's crown is slipping, and fast
LONDON: The dollar has sunk to its lowest in three years as rapidly changing US trade policy unsettles markets and expectations build for Federal Reserve rate cuts, fuelling outflows from the world's biggest economy. With the dollar down almost 10 per cent against a basket of major currencies this year, other countries around the globe are grappling with unanticipated FX moves that are having a knock-on impact on economic growth and inflation. "There's clearly solid dollar selling," said Kit Juckes, chief FX strategist at Societe Generale. Here's a look at some of the biggest movers: 1/ CROWN JEWELS Scandinavia's currencies are the standout performers against the dollar so far in 2025. The Swedish crown is up 14 per cent, its best performance at this point in the year against the US currency in at least 50 years. Norway's crown is up nearly 12 per cent, its best run since 2008. Highlighting just how much of this strength stems from dollar weakness, Sweden's crown is up only 4 per cent against the euro and Norway's just 1.8 per cent . Sweden is expected to cut rates this month as inflation and its economy slow, yet its currency shows no signs of weakening. In Norway, lower oil prices often temper the crown, but that dynamic has also been upended by its relationship with the dollar. 2/ SAFE-HAVEN WOES The euro, Swiss franc and Japanese yen are also among the biggest beneficiaries of the dollar's fall from grace, up roughly 10 per cent each so far this year. But this comes at a price. Swiss inflation turned negative in May, marking the first decline in consumer prices for more than four years. The surge in the franc reduces the price of imported goods, and piles pressure on the central bank to cut rates back below 0 per cent. European Central Bank rate setters will also have a wary eye on the single currency, which at around US$1.1572 is at its highest since 2021. "In my heart-of-hearts we are going to get to US$1.20 but we shouldn't get there too fast because it's deflationary," said SocGen's Juckes. Even after the recent surge, the yen remains down almost 30 per cent from end-2020 levels, leaving Japan to try to balance the negatives of a stronger currency with the need to demonstrate in trade talks with Washington that it is not seeking an unfair advantage from its longer-term weakness. 3/ FACTORY ASIA For years, Asian investors parked trillions of dollars in US assets such as Treasuries. US President Donald Trump's April 2 "Liberation Day" fired the starting gun for that capital to start flowing back to the world's manufacturing powerhouses, boosting their currencies. Taiwan's dollar surged 10 per cent over two days in May and is up nearly 12 per cent this year, while the Korean won has gained around 10 per cent. Singapore's dollar, Malaysia's ringgit and Thailand's baht are all up 6 per cent too, but China's yuan - arguably the most exposed to tariffs - has only appreciated by about 2 per cent offshore, hemmed in by the central bank's guardrails around its onshore counterpart. China wasn't labelled a manipulator in the US Treasury's latest currency report, but the lag in the yuan will not have gone unnoticed in Washington. 4/ OUTLIER Argentina's peso is an outlier, down around 15 per cent against the dollar and one of this year's weakest performers. The reasons are domestic with the introduction of a new exchange rate regime in April allowing the peso to float freely within a gradually expanding band that started between 1,000-1,400 pesos per dollar. Still, the chaotic crash feared by some has been avoided and a recent US$20 billion loan agreement with the IMF is positive. In contrast, Mexico's peso, which was under particular pressure at the start of the year from US trade policy, has bounced back to near its strongest levels since August. While it could gain further if tariff spats are resolved, it is also sensitive to the US economic outlook. 5/ STERLING Softer data has raised the prospect of Bank of England rate cuts and capped sterling's recent rally to more than three-year highs against the dollar. The pound is up almost 9 per cent this year and analysts say foreign buyers may be rushing to snap up UK Plc before any further dollar weakness makes future transactions more expensive. More than US$10 billion in bids for British companies were announced on Monday, this year's busiest day, according to Dealogic data. Analysts do, however, expect sterling to underperform other major currencies bar the dollar, given fiscal worries and weakening growth.
New Straits Times
an hour ago
- New Straits Times
Oil surges, stocks fall on Middle East fears as Israel strikes Iran
HONG KONG: Oil prices soared and stocks sank Friday after Israel launched "preemptive" strikes on Iran's nuclear and military sites and warned of more to come, stoking fears of a full-blown war. Investors ran for the hills on news of the attacks and a warning that retaliatory action from Tehran was possible, after US President Donald Trump said a "massive conflict" in the region was possible. While Tel Aviv said it had struck military and nuclear targets Iran said residential buildings had been hit. Israeli Prime Minister Benjamin Netanyahu said in a video statement: "This operation will continue for as many days as it takes to remove this threat. "We struck at the heart of Iran's nuclear enrichment programme. We targeted Iran's main enrichment facility at Natanz. We also struck at the heart of Iran's ballistic missile programme," he added. Iranian nuclear scientists "working on the Iranian bomb" had also been hit, he said. Israeli Defence Minister Israel Katz cautioned that "a missile and drone attack against the State of Israel and its civilian population is expected in the immediate future." Trump had previously warned that an attack could be on the cards, telling reporters at the White House: "I don't want to say imminent, but it looks like it's something that could very well happen." The US leader said he believed a "pretty good" deal on Iran's nuclear programme was "fairly close", but that an Israeli strike on the country could wreck the chances of an agreement. A US official said there had been no US involvement in the operation. Still there are worries the United States could be sucked into the crisis after Iran threatened this week to target US military bases in the region if a regional conflict broke out. Both main oil contracts, which had rallied earlier in the week on rising tensions, spiked more than eight percent amid fears about supplies of the commodity. The rush from risk assets to safe havens saw equity markets across Asia tumble and bonds rally with gold. US and European equity futures were deep in the red. "The Middle East powder keg just blew the lid off global markets," said Stephen Innes at SPI Asset Management. "Equity futures are plummeting. Bond yields are sinking. Gold and oil are skyrocketing," he added. "Brent crude futures are racing toward the mid-US$70s range – but if the Strait of Hormuz, which accounts for 20 per cent of global oil flows, finds itself in the blast radius, you can add another US$15 to the bid. "If Iran holds back, we get a relief bounce. But if missiles start raining down on Tel Aviv or Tehran retaliates with real teeth, we're staring down a scenario that could redefine the macro narrative for the rest of 2025." Banking giant JPMorgan Chase had warned just this week that prices could top US$130 if the worst-case scenario developed. Market sentiment had already been low after Trump sounded his trade war klaxon again by saying he would be sending letters within the next two weeks to other countries' governments to announce unilateral levies on their exports to the United States. The "take it or leave it" deal spurred fears he would reimpose the eye-watering tolls announced on April 2 that tanked markets before he announced a 90-day pause. West Texas Intermediate: UP 8.6 per cent at US$73.86 per barrel Brent North Sea Crude: UP 8.2 per cent US$75.03 per barrel Tokyo - Nikkei 225: DOWN 1.5 per cent at 37,606.72 Hong Kong - Hang Seng Index: DOWN 0.3 per cent at 23,959.81 Shanghai - Composite: DOWN 0.2 per cent at 3,39748 Dollar/yen: DOWN at 143.18 yen from 143.56 yen on Thursday Euro/dollar: DOWN at US$1.1543 from US$1.1583 Pound/dollar: DOWN at US$1.3557 from US$1.3605 Euro/pound: UP at 85.12 pence from 85.11 pence New York - Dow: UP 0.2 per cent at 42,967.62 (close)
Barnama
an hour ago
- Barnama
Economic News Reporting Skills Pivotal As Tariffs Dominate Global Headlines
United States (US) President Donald Trump's shocking 'Liberation Day' announcement on April 2 to impose debilitating tariffs on 168 countries, including Malaysia, precipitated what was surely almost exclusive coverage of tariffs internationally for the trade war he started as a result. KUALA LUMPUR, June 13 (Bernama) -- Journalists are keenly aware that knowledge in business and economics reporting is a pivotal component in covering domestic, regional and international issues competently, with tariffs now dominating global headlines. And if the sudden imposition of tariffs was not enough, the daily flip-flops by the Trump administration, the 90-day pause, the US Federal court ruling the tariffs unlawful, the appeals court reinstating them, and the on-and-off trade tension between economic superpowers, the US and China, have only added to the overall confusion. Ironically, even American politicians supporting Trump's policies did not fully comprehend what they were and how they would raise the prices of goods for which American consumers would ultimately pay. Undeniably, journalists from all over scrambled to Google searches seeking information on tariffs, which are actually taxes or levies imposed on imports into the US. But there is no time to complain, and neither can we complain, for it is incumbent upon us to tell the story to the world not only daily but on a real-time basis. More often than not, we are called upon to do too many things. This is a lot for journalists in Malaysia and elsewhere to digest. As the common adage goes, journalists can be 'a jack of all trades and master of none.' This entails reporters who cover other beats to apprise themselves of what tariffs mean, their impact on economies, on business and break them down to explain in simple terms how it affects the everyday lives of global citizens. Veteran business journalist and former editor of Malaysian Business and Focus Malaysia, Charles Raj, opines that knowledge of business and economic news in reporting is important, as nearly every area of journalism today involves it. For example, crime and court reporters will need to be familiar with business and finance when reporting on commercial crime stories and financial and business-related court cases, said Charles, who has been a journalist for 40 years and is now a media consultant. Even reporters on the political beat must understand data on economics, gross domestic product (GDP) or growth figures, trade and financial statistics as well as investments, he told Bernama ahead of the National Journalists' Day (HAWANA) 2025 themed "Journalism in the New Era: Embracing AI, Safeguarding Ethics' to be officiated on June 14 by Prime Minister Datuk Seri Anwar Ibrahim. Business journalism specialisation makes career shifts more achievable But there is a silver lining to all this. 'A business reporter has a faster route to specialisation on economics, finance, markets, commodities and corporate moves which lead to stronger access to influential sources,' says Datuk Yong Soo Heong, the president of the Malaysian Press Institute (MPI). 'The analytical skills and understanding of business and industry through business reporting make career shifts into communications, investor relations, financial public relations or even corporate strategy roles more achievable,' he said. Yong, who is the former general manager of the Malaysian National News Agency (Bernama), with a total of 42 years of experience in journalism, 30 of which were in business journalism, quipped that 'this niche expertise also leads to higher salaries.' Some business reporters transition into greater editorial leadership roles or jobs with global relevance because business stories like the ongoing tariffs issue have major international dimensions, he said. Looking back, the Asian financial crisis in 1998, where Malaysia imposed capital controls to insulate the ringgit against excessive market speculation, can be considered a watershed event for reporters of that era. The fact that it affected life not only in Malaysia but regionally as well forced even general news reporters who were more adept at covering politics, education, sports, health, and accidents to also cover business and economics news, for these issues now made headlines on a daily basis. Initially, it was incumbent mainly on the business reporters who cover markets to churn out economic news stories on the financial difficulties, lay-offs, corporate closures and bailouts to tide the country over the financial crisis. It was a crisis indeed as higher prices and costs were the adverse results from the ringgit's plunge to as low as RM5.20 at one point against the US dollar in the foreign exchange market, then affecting all and sundry. No longer could one attempt to write banking and financial news and not know that when the ringgit's numerical figures go up vis-à-vis other currencies comparatively, it means its value has actually depreciated and not the other way around. Like court reporting, economic news reporting can be somewhat intricate, demanding a certain amount of understanding of economic and trade policies. Those covering the Prime Minister's beat have to be well read on how markets function, the intricacies of the forex market, how currencies are traded, interest rate fluctuations, takeovers and mergers, bonds and sukuk issuance, as well as GDP and inflation data, which eventually evolved into politically sensitive matters. As stock markets roiled and companies closed down, Malaysian journalists brought news to the people of the measures taken by the government to mitigate the impact of the economic crisis and reassure the public. Obviously, the ensuing higher costs from costlier imports impacted the everyday life of Malaysians, for which daily reports were the order of the day. For instance, parents financing their children's overseas education suddenly found themselves in a financial quandary, having to pay almost double for the fees overnight. This was due to the marked depreciation of the ringgit against a basket of foreign currencies, which included the US dollar, British pound, major European currencies like the Deutschemark, as well as the Japanese yen and Australian dollar – destinations frequented by Malaysian students seeking tertiary education overseas. Street vendors and gig workers must understand how money moves, as it affects all Veteran broadcast journalist and Bernama TV English Current Affairs producer, Gerard Ratnam, said there was a time when business news was just for boardrooms. 'But today, even the street vendor or gig worker needs to understand how money moves as it affects all of us. 'Take the word 'tariff' for example, and how it has become coffee shop talk. It is interesting to see how everyday people talk about it — and that is why business reporting is more important than ever, because today everyone needs to be in the know,' he said. Just recently, it could be anybody's guess that the most-written and quoted word at the 46th ASEAN Summit and related summits with the Gulf Cooperation Council (GCC) and China, as well as ASEAN Finance Ministers and Central Bank Governors Meeting in May, chaired by Malaysia, would undoubtedly have been 'tariffs.' The advantages that reporters nowadays have compared with their counterparts during the 1998 Asian financial crisis were the wide availability of information on the Internet, serving as vital background material. Transcription apps and AI chatbots are modern-day tools for journalists Technological advances such as electronic mail or emails, WhatsApp social media services on their mobile phones, transcriptor applications whereby volumes of audio recordings can be converted into written text within a matter of minutes, come in handy to facilitate the dissemination of news quickly on a real-time basis. Even more useful is the availability of artificial intelligence (AI) chatbots such as ChatGPT that can write news stories for the reporter in a matter of seconds, which many reporters of the days gone by might argue as killing journalistic creativity and worse still, smacking of plagiarism - a taboo in journalism. Nevertheless, that is a topic for a later debate, but it is undoubtedly a new era for journalism, thanks to technology and AI. But now what matters most to journalists, both seasoned practitioners as well as newbies, is to arm themselves with knowledge to comprehend business and economic news, trade tensions, free trade agreements and import levies. By better understanding what is happening to the world due to the imposition of tariffs, they can write their stories in as simplistic a manner as possible and demystify complex issues, and in the process adhere to the often-used adage in newsrooms that even housewives should understand the most intricate of issues affecting the economy. As media practitioners celebrate HAWANA 2025, new reporters and students bent on pursuing journalism as a career might ask how one becomes a specialist in economic news and business reporting. The tools are similar to other journalistic disciplines, which include expanding one's knowledge via constant and voluminous reading, making contacts, writing as much as possible and as often as possible, but most importantly, being passionate about journalism by treating it as a vocational calling. -- BERNAMA BERNAMA provides up-to-date authentic and comprehensive news and information which are disseminated via BERNAMA Wires; BERNAMA TV on Astro 502, unifi TV 631 and MYTV 121 channels and BERNAMA Radio on FM93.9 (Klang Valley), FM107.5 (Johor Bahru), FM107.9 (Kota Kinabalu) and FM100.9 (Kuching) frequencies. Follow us on social media : Facebook : @bernamaofficial, @bernamatv, @bernamaradio Twitter : @ @BernamaTV, @bernamaradio Instagram : @bernamaofficial, @bernamatvofficial, @bernamaradioofficial TikTok : @bernamaofficial
