Ringgit continues to improve ahead of Malaysia's 1Q GDP announcement
At 8am, the local note appreciated to 4.2705/2920 versus the greenback from Thursday's close of 4.2795/2870.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said markets are waiting for Malaysia's 1Q 2025 GDP growth data, with advance estimates of a 4.4 per cent expansion.
He noted that the data will be a key factor in Bank Negara Malaysia's (BNM) decision on whether to ease monetary policy, as well as the forecast for GDP growth this year.
"As such, we expect ringgit to trade more cautiously today," he told Bernama.
Meanwhile, Mohd Afzanizam noted that the US Dollar Index (DXY) was down by 0.16 per cent to 100.87 points, while the United States (US) Producer Price Index (PPI) continued to moderate to 2.4 per cent year-on-year in April after sustaining at 3.4 per cent in February and March.
This suggests that inflation in the US will continue to ease and create more room for the US Federal Reserve (Fed) to cut rates this year, he added.
"However, Fed chair Jerome Powell's speech at the Thomas Laubach Research Conference in Washington hinted that the inflation trend is likely to be more erratic due to the supply shocks, which have become more frequent and potentially more persistent.
"This could mean the Fed is not keen to ease its monetary policy stance in the near term, which would affect the ringgit," he said.
At the opening, the ringgit traded mostly higher against a basket of major currencies.
It was up against the British pound to 5.6819/7105 from 5.6862/6961 at Thursday's close, and rose vis-a-vis the euro to 4.7800/8040 from 4.7939/8023 yesterday, but edged down versus the Japanese yen to 2.9338/9490 from 2.9326/9379 previously.
At the same time, the local note was traded mixed against its Asean peers.
It climbed versus the Singapore dollar to 3.2931/3102 from 3.2950/3010 yesterday and gained against the Philippine peso to 7.66/7.70 from 7.67/7.69 previously.
The ringgit had also strengthened against the Indonesian rupiah at 258.3/259.7 from 258.8/259.4 at the previous close, but fell against the Thai baht to 12.8630/9367 from 12.8198/8488 yesterday.
-- BERNAMA
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Express
10 hours ago
- Daily Express
Tariff impact: Recession is unlikely but growth may dampen
Published on: Saturday, August 09, 2025 Published on: Sat, Aug 09, 2025 By: Bernama Text Size: Zafrul said both Malaysia and the US have agreed on key terms of a reciprocal tariff agreement that comes into effect today, Aug 8. OSAKA: Malaysia's economic growth is expected to slow down following the implementation of the United States (US) tariff. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said that while the impact may not be severe enough to trigger a recession, the country would experience slower-than-expected growth. This would be in line with Bank Negara Malaysia's (BNM) recent revision of its 2025 gross domestic product (GDP) forecast from 4.5–5.5 per cent to 4.0–4.8 per cent. Advertisement 'The impact may not lead to a recession, but there is an impact, where growth is achieved but at a lower rate,' he said when asked about how soon the impact can be seen following the tariff implementation. Tengku Zafrul was speaking to the Malaysian media at the Malaysia Pavilion during the World Expo Osaka 2025, here today. He said both Malaysia and the US have agreed on key terms of a reciprocal tariff agreement that comes into effect today, Aug 8. He said the deal covers six main chapters and has already received input from Malaysia, with the final joint statement now pending confirmation from the US side. Advertisement Meanwhile, for sectors such as electrical and electronics (E&E) and pharmaceuticals, which are currently enjoying zero tariffs, Tengku Zafrul noted that there are growing concerns regarding global demand, particularly as businesses start to feel the impact of increased costs. 'A lot of frontloading happened. A lot of companies actually brought in or bought stocks and even finished goods. So that means some of the companies are able to take the hit rather than pass it to the consumers. 'But as the stocks deplete or as the raw materials or the old supply chain knock-on effect comes in, I am not sure whether the companies can absorb the total cost,' he said. If suppliers or producers cannot absorb the increase, they will have to pass it to buyers. 'Can the buyers afford it? Maybe they can, but they will not buy as much. So, this is the knock-on effect on the economy, but that is in theory, and we will see,' he said Tengku Zafrul said the US makes up just 15 per cent of Malaysia's total trade portfolio and remains the country's largest export destination, with exports reaching nearly RM200 billion in 2024, of which 60 per cent is from the E&E sector. He said Malaysia remains competitive compared to regional peers, with the average tariff levels not far off from countries like Taiwan (20 per cent). However, he noted the scale of the US economy, which accounts for nearly 27 per cent of global gross domestic product, hence any slowdown there will have far-reaching consequences. 'Some countries may be hit harder than others, depending on how open their economies are and how heavily they depend on trade with the US,' he added. On former Prime Minister Tun Dr Mahathir Mohamad's claims about Malaysia's tariff negotiations with the US, Zafrul said it was his and the ministry's responsibility to provide accurate information to all parties. 'I believe it is our duty as the government to present the true picture of the tariff situation. 'We have already issued a statement previously. And yesterday, I also corrected the inaccurate facts (raised by Dr Mahathir). 'Perhaps he got the wrong information source... we are just there to correct the facts,' he added. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
BusinessToday
10 hours ago
- BusinessToday
Ringgit To Find Support From Stable Domestic Economy And Softer USD
The ringgit strengthened this week, trading within the RM4.23–RM4.24/USD range. This performance came as a weaker-than-expected US jobs report and a series of political headlines pressured the US dollar, causing it to lose ground. The catalyst for the ringgit's rally was Friday's soft payrolls data, which drove the DXY Dollar Index below the 99.0 mark. This prompted markets to re-evaluate the US Federal Reserve's trajectory, with traders now pricing in expectations for three 25 basis point rate cuts this year. Adding to the pressure on the greenback was a series of political and economic headlines. President Trump's reported firing of the Bureau of Labor Statistics (BLS) chief, the resignation of Federal Reserve Governor Kugler, and an ongoing tariff dispute between the US and India injected a fresh 'risk premium' into US assets. Furthermore, optimism surrounding a potential Ukraine-Russia truce and dovish comments from Fed officials hinting at weakening labor conditions further weighed on the USD. Market attention is now turning to upcoming US inflation figures. Persistent price pressures could delay the Fed's expected rate cuts. Consensus forecasts predict that core Consumer Price Index (CPI) will rise by 0.3% month-on-month (from 0.2%), while the Producer Price Index (PPI) is expected to increase by 0.2% (from 0.0%). If inflation proves to be hotter than expected, investors may be forced to once again reassess the Fed's policy path. In addition to economic data, traders will continue to monitor Fedspeak and new tariff announcements for clues on future market direction. President Trump's proposed tariffs on semiconductors and pharmaceuticals are likely to continue to dampen sentiment in riskier assets, while pressure on BRICS nations and signs of strain in the US-China trade détente add to the uncertainty. Despite the external uncertainties, Kenanga Research expects the ringgit to find support from domestic economic stability and the softer US dollar, likely holding near its current levels. Technically, the USD/MYR pair is hovering near its 5-day Exponential Moving Average (EMA) at 4.23. The immediate support level is at 4.23 (S1), with resistance at 4.24 (R1).
BusinessToday
12 hours ago
- BusinessToday
Nasdaq Hits Another Record As Tech Surge Lifts Wall Street
US stocks ended higher on Aug 8, with the Nasdaq Composite closing at a record high for the second straight day as technology shares rallied and optimism grew over potential interest rate cuts, Reuters reported. The Nasdaq climbed 207.32 points, or 0.98%, to 21,450.02 — its 18th record close of the year — while the S&P 500 rose 49.45 points, or 0.78%, to 6,389.45, just shy of its own record. The Dow Jones Industrial Average added 206.97 points, or 0.47%, to 44,175.61. All three major indexes posted solid weekly gains: S&P 500 up 2.4%, Dow up 1.3%, and Nasdaq up 3.9%. Apple Inc shares jumped 4.2% on Aug 8 and 13.3% for the week, marking their best weekly performance since 2020. The rally followed President Donald Trump's announcement that Apple will invest an additional US$100 billion in the US, bringing its total planned commitment to US$600 billion over four years. The S&P 500's technology and communication services sectors led the advancement on Aug 8, both ending at record highs. Gilead Sciences surged 8.3% after raising its full-year outlook, while Expedia gained 4.1% on upgraded revenue and bookings guidance. Weaker US economic data has bolstered bets on Federal Reserve (Fed) rate cuts. According to CME's FedWatch Tool, traders see an 89.4% chance of at least a 25-basis-point cut in September, up from 80.3% a week ago, with two cuts expected by year-end. Investor focus also turned to Trump's nomination of Council of Economic Advisors Chair Stephen Miran to a short-term Fed board seat after Adriana Kugler's abrupt departure. Looking ahead, markets face a key test with Aug 12's Consumer Price Index report, while geopolitical tensions persist after India shelved planned US arms and aircraft purchases in response to higher tariffs.
