Cooling US economy lifts ringgit early Friday
KUALA LUMPUR, June 13 — The ringgit extended its gains against the US dollar at Friday's open, buoyed by continued weakness in US economic data, an analyst said.
At 8 am, the local unit strengthened to 4.2095/2270 against the greenback, from Thursday's close of 4.2155/2245.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) fell 0.72 per cent to 97.0921, its lowest since March 2022, as data indicated a cooling labour market and moderating inflation trajectory.
He noted the core Producer Price Index (PPI) for May rose 3.0 per cent year-on-year, below the consensus estimate of 3.1 per cent. Initial jobless claims also rose to 248,000 last week, higher than the forecast of 242,000.
'Such data are seen as critical in shaping the US Federal Reserve's (Fed) stance ahead of the Federal Open Market Committee (FOMC) meeting on June 17 and 18,' he told Bernama.
Mohd Afzanizam said while the Fed is expected to keep the Federal Funds Rate unchanged at 4.50 per cent, market participants will be watching the central bank's quarterly economic projections closely.
'In March, Fed officials projected the policy rate at 3.9 per cent for 2025, which implies two rate cuts this year.
'On that note, we believe emerging market currencies, including the ringgit, are poised to appreciate,' he said.
At the same time, the ringgit traded mostly lower against a basket of major currencies.
It rose against the euro to 4.8860/9063 from Thursday's close of 4.8765/8869, but weakened vis-à-vis the Japanese yen to 2.9412/9539 from 2.9329/9394, and slipped against the British pound to 5.7363/7601 from 5.7213/7335.
Against Asean currencies, the ringgit was mixed.
It edged up against the Philippine peso to 7.54/7.58 from 7.55/7.57 and gained slightly versus the Indonesian rupiah to 259.1/260.3 from 259.5/260.2.
However, it eased against the Singapore dollar to 3.2936/3078 from 3.2934/3006, and declined against the Thai baht to 13.0124/0754 from 12.9828/13.0173. — Bernama
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Free Malaysia Today
3 hours ago
- Free Malaysia Today
MACC secures RM4.5mil forfeiture linked to 1MDB from Swiss bank account
MACC said this marks the first successful forfeiture of overseas assets linked to 1MDB without involving prosecution. (AP pic) PETALING JAYA : The Malaysian Anti-Corruption Commission has secured the forfeiture of US$954,299.58 (RM4.5 million) from a Swiss bank account linked to the misappropriation of 1MDB funds. MACC said the Kuala Lumpur High Court allowed the forfeiture today after the deputy public prosecutor informed the court that there were no objections or claims made by any party during the proceedings. 'Justice K Muniandy granted the application to forfeit the funds held in a BSI Bank account in Switzerland under the name of Derivale Ltd, whose beneficiary is Azlin Alias,' it said in a statement. The forfeiture was carried out under Section 56 of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001. According to MACC, this marks the first successful forfeiture of overseas assets without involving prosecution. It said the funds will now be transferred to the government as part of ongoing recovery efforts related to the 1MDB scandal. Last month, MACC chief Azam Baki said repatriating assets linked to 1MDB remained a difficult process as many of these stolen assets were located overseas. He said the complex nature of the case made international cooperation crucial, especially when it came to tracing and retrieving funds that were siphoned into multiple countries. Azam also said Malaysia lost an estimated RM277 billion to corruption between 2018 and 2023 – an average of RM55 billion a year – describing the amount as 'very alarming'.
Free Malaysia Today
7 hours ago
- Free Malaysia Today
Bermaz Auto stung by Chinese cars, skids to 5-year low
Bermaz Auto's Q4 FY2025 net profit crashed 76.5% to RM21.2 million from RM90.2 million a year ago. (Bernama pic) PETALING JAYA : Bermaz Auto Bhd's shares tumbled to its lowest in nearly five years after its net profit for the fourth quarter ended April 30 (Q4 FY2025) crashed 76.5% to RM21.2 million from RM90.2 million a year ago. This was its lowest quarterly profit in three years as revenue dropped 43.6% to RM528.7 million from RM937.5 million. For the full year, net profit fell 55% to RM155.9 million from RM345.6 million, as revenue dropped nearly 30% to RM2.62 billion from RM3.9 billion. Bermaz, which mainly assembles Mazda and Kia vehicles, attributed the steep drop in profit largely to China-made vehicles flooding into the local market. 'The continuous influx of Chinese vehicles had also impacted the sales of other marques in the country,' it said in a bourse filing yesterday. The automotive company's poor results disappointed investors and analysts alike, leading to a plunge in its share price today. The stock fell as much as 11.3% or 11 sen to 82 sen, its lowest level since late 2020. At this price, the company has a market capitalisation of RM962 million. Since the end of 2024, Bermaz has been on a downtrend as rising popularity of Chinese car brands among Malaysians has eroded sales of its Japanese-made Mazda and Korean-made Kia vehicles. Year to date, its shares have slumped 48%, wiping out half of the company's value. Hong Leong Investment Bank downgraded the stock to 'sell', stating competition in Malaysia and the Philippines is expected to intensify with the influx of Chinese manufacturers 'offering feature-rich models at competitive prices'. Bermaz has sought to mitigate the impact of Chinese brands in the domestic market by offering Chinese marques, having secured the distribution rights to Xpeng and Deepal cars, which are mainly electric vehicles. In a note, Apex Securities said sales of XPeng vehicles, while appearing promising, have yet to contribute significantly to offset the slide in Mazda and Kia sales. The research house downgraded Bermaz to 'hold' from 'buy', highlighting the 'intense competition' in the industry and weaker sales across key locally assembled models. The outlook remains murky with Bermaz anticipating its performance to be challenging for the financial year ending April 30, 2026, its filing said. Total vehicle sales in Malaysia for the first four months dropped 5.4% to 248,730 units from 263,050 units in the same period last year, according to Malaysian Automotive Association data.
Free Malaysia Today
7 hours ago
- Free Malaysia Today
Petronas awards first MBR 2025 contract to Dialog, taps Sabah's hydrocarbons
Petronas said the contract, covering a sub-block area within the Sandakan Basin, was awarded to Dialog Resources Sdn Bhd. (Petronas pic) PETALING JAYA : Petronas has awarded a small field asset production sharing contract (SFA PSC) for the Mutiara Cluster, located off Sabah's coast, through Malaysia Petroleum Management (MPM). In a statement today, Petronas said the contract was offered via its division, MPM, under the Malaysia Bid Round 2025 (MBR 2025) launched earlier this year. Petronas said the contract, covering a sub-block area within the Sandakan Basin, was awarded to Dialog Resources Sdn Bhd. 'It will serve as the sole operator with a 100% participating interest in the block,' it said. The Mutiara Cluster, the first PSC awarded under MBR 2025, is expected to begin production by 2029. Petronas said it comprises five fields, including Nymphe, Nymphe North, Kuda Terbang, Benrinnes and Mutiara Hitam. MPM senior vice-president Bacho Pilong said the award reflects growing confidence in Malaysia's upstream opportunities and the competitive terms offered under MBR 2025. 'As an industry shaper, MPM remains committed to facilitating impactful partnerships and catalysing investments that not only advance national energy aspirations but also uplift regional development in collaboration with the Sabah government. 'We also look forward to welcoming more investors to participate in Block SB505, offered in MBR 2025, the next gateway to unlock the potential of the Sandakan Basin,' he added. Petronas reiterated its commitment to ensuring an optimal and sustainable energy supply, with MPM playing a crucial role in managing the country's petroleum resources and providing stewardship for upstream petroleum activities in Malaysia. 'Strategically located off Sabah's east coast, the contract is envisioned as a catalyst to open up the Sandakan Basin for further exploration. 'It supports a broader value creation and encourages local participation, in line with Petronas's aspiration to position Malaysia as an attractive destination for upstream investments,' it added.
