Ringgit strengthens as China economic data boosts sentiment
News that Nvidia can resume microchip sales to China also suggested that US tariff shocks could be managed, further lifting sentiments.
SPI Asset Management managing partner Stephen Innes said the ringgit 'caught a gentle tailwind' after China's second quarter gross domestic product surprised to the upside, which is a regional morale boost driven not by American demand, but by 'China's resilience in non-US export lanes'.
'It's a reminder that Asean currencies, particularly the ringgit, can still find traction when Beijing's supply engine hums and its trade compass pivots south and east rather than west,' he added.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid agreed that external factors had driven the ringgit and other currencies to a stronger level today.
At 6pm, the local note rose to 4.2395/4.2440 from Monday's close of 4.2505/4.2560.
At the close, the ringgit traded higher against a basket of major currencies.
It strengthened against the British pound to 5.7047/5.7107 from 5.7305/5.7379, improved against the Japanese yen to 2.8702/2.8734 from 2.8858/2.8897 and was up versus the euro at 4.9539/4.9591 from 4.9693/4.9757.
The local note also trended higher against Asean currencies.
It traded higher vis-à-vis the Singapore dollar at 3.3095/3.3133 from 3.3184/3.3229 yesterday, improved against the Indonesian rupiah to 260.6/261 from 261.5/262 and strengthened versus the Philippine peso to 7.47/7.49 from 7.50/7.51. It gained against the Thai baht to 13.0784/13.0988 from 13.1213/13.1439.
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