Latest news with #AfzanizamAbdulRashid
Free Malaysia Today
5 days ago
- Business
- Free Malaysia Today
Ringgit ends higher on weaker US dollar, cautious inflation outlook
KUALA LUMPUR : The ringgit closed higher against the US dollar today, supported by a weaker greenback following downbeat US economic data, as investors shifted into risk-on mode. Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said traders and investors were weighing the prospects of an economic slowdown and the risk of higher inflation stemming from recent tariff shocks. 'This has led to a policy dilemma among federal open market committee (FOMC) members, and hence the scope for interest rate cuts is rather limited,' he told Bernama, adding that the next key data point would be the non-farm payroll (NFP) report due on Friday. Consensus estimates expect May's NFP to reach 130,000, down from 177,000 in April, while the unemployment rate is forecast to hold steady at 4.2%. At 6pm, the local note stood at 4.2245/4.2295 against the greenback, strengthening from yesterday's close of 4.2435/4.2490 At the close, the ringgit traded mostly higher against a basket of major currencies. It slipped against the Japanese yen to 2.9495/2.9531 from yesterday's 2.9444/2.9486 but strengthened versus the euro to 4.8235/4.8292 from 4.8300/4.8362 and appreciated against the British pound to 5.7301/5.7369 from 5.7427/5.7502. The local currency also traded higher against most of its Asean peers. It appreciated versus the Singapore dollar to 3.2881/3.2922 from 3.2906/3.2951, advanced against the Indonesian rupiah to 259.3/259.8 from 260.4/260.8, and edged higher against the Philippine peso to 7.59/7.61 from 7.60/7.62. However, it fell against the Thai baht to 12.9925/13.0138 from 12.9679/12.9911.
Free Malaysia Today
20-05-2025
- Business
- Free Malaysia Today
Ringgit rises following US credit rating downgrade
KUALA LUMPUR : The ringgit ended higher against the US dollar today, supported by a weaker US Dollar Index (DXY), which fell 0.71% to 100.376 following a downgrade of the US government's sovereign credit rating. Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the decline in the DXY was due to populist measures by President Donald Trump's administration, which are likely to compromise the US government's ability to contain the widening budget gap and ballooning debt. 'While Moody's Rating has maintained its assessment of the US dollar's special status as a global reserve currency, the current tariff shocks may have resulted in traders and investors reassessing such a proposition. 'However, this is a structural issue that may require a longer time horizon,' he told Bernama. Meanwhile, he said the US dollar appears to be a little edgy despite heightened economic uncertainties, which normally result in significant appreciation of the US dollar. At 6pm, the local note rose to 4.2870/4.2945 versus the greenback from Friday's close of 4.2900/4.2980. In addition, the ringgit traded lower against a basket of major currencies. It depreciated versus the Japanese yen to 2.9596/2.9650 from 2.9470/2.9527, eased vis-à-vis the euro to 4.8344/4.8429 from 4.8022/4.8112, and went down against the British pound to 5.7420/5.7521 from 5.7018/5.7125 previously. The local note was mixed against its Asean peers. It appreciated vis-à-vis the Philippine peso to 7.69/7.71 from 7.71/7.73 last Friday, but decreased against the Singapore dollar to 3.3135/3.3195 from 3.3041/3.3105, and declined against the Thai baht to 12.9630/12.9924 from 12.9003/12.9318. However, the ringgit was flat against the Indonesian rupiah at 260.8/261.4 from 260.8/261.5.
Free Malaysia Today
20-05-2025
- Business
- Free Malaysia Today
Ringgit closes lower despite weaker US Dollar Index
KUALA LUMPUR: The ringgit retreated against the greenback today despite the weaker US Dollar Index (DXY) and lower US Treasury yields after the recent downgrade of the US's credit rating by Moody's Ratings. Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid noted that the ringgit had climbed to RM4.2873 in the afternoon session from the previous day's close of RM4.2908 before ending lower. 'The gains were likely capped as some traders took profit,' he told Bernama. He noted that the Reserve Bank of Australia (RBA) decided to cut the cash rate by 25 basis points to 3.85% today after it was last reduced in February due to greater uncertainties in the global economic outlook following the tariff shocks of the US. 'Consequently, the Aussie dollar was weaker against the US dollar by 0.51% to US$0.6424 per Australian dollar. 'The RBA decision reflects uncertainties surrounding the tariff shocks, which will continue to affect monetary policy decisions across the globe,' he said. Afzanizam said today's data on Malaysia's exports surprised on the upside when it grew by 16.4%, surpassing the consensus estimates of 7.5%. 'While it remains to be seen whether such a trajectory can be maintained in the months to come, the Malaysian economy in the second quarter should be able to grow more than 4%,' he said. At 6pm, the local note eased to 4.2950/4.3010 versus the greenback from yesterday's close of 4.2870/4.2945. At the close, the ringgit traded mostly lower against a basket of major currencies. It was slightly higher vis-à-vis the euro to 4.8340/4.8408 from yesterday's 4.8344/4.8429, but depreciated versus the Japanese yen to 2.9727/2.9773 from 2.9596/2.9650, and dipped against the British pound to 5.7428/5.7509 from 5.7420/5.7521 previously. The local note traded lower against its Asean peers. It went down vis-à-vis the Philippine peso to 7.72/7.73 from 7.69/7.71 yesterday, decreased against the Singapore dollar to 3.3153/3.3202 from 3.3135/3.3195, and declined against the Thai baht to 12.9856/13.0116 from 12.9630/12.9924. It slid against the Indonesian rupiah to 261.6/262.1 from 260.8/261.4.
Malaysiakini
08-05-2025
- Business
- Malaysiakini
Mixed outlook ahead of BNM's rate announcement tomorrow
Although the overnight policy rate (OPR) is expected by many to stay at 3.0 percent, some economists see a possible 25 basis points (bps) cut by Bank Negara Malaysia as pre-emptive support against the potential downside risks of the American tariffs. They believe that business sentiment has turned bearish despite Washington's 90-day pause on the 24 percent import levy on Malaysia, with industries operated by both big and small companies being affected. Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the expectation of the rate cut is...
Free Malaysia Today
07-05-2025
- Business
- Free Malaysia Today
Ringgit ends lower ahead of MPC meeting
KUALA LUMPUR : The ringgit closed lower against the US dollar today as traders remained cautious ahead of Bank Negara Malaysia's (BNM) monetary policy committee (MPC) meeting, said an analyst. Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the MPC meeting on May 8 will be on traders' radar. 'We foresee that BNM might lower its policy rate as a pre-emptive measure to provide support for growth,' he told Bernama. Afzanizam said traders also remained focussed on the two-day US Federal Open Market Committee meeting, which begins May 6. 'The sharp appreciation of the ringgit against the US dollar (previously) may have compelled traders and investors to lock in some gains. 'Additionally, the US Dollar Index (DXY) continues to languish below 100 points at around 99.583 points at present,' he said. At 6pm, the local note depreciated to 4.2285/4.2360 versus the greenback compared to yesterday's close of 4.1990/4.2035. At the close, the ringgit traded lower against a basket of major currencies. It eased versus the Japanese yen to 2.9502/2.9556 from 2.9192/2.9225 at yesterday's close, inched lower vis-a-vis the euro to 4.7824/4.7909 from 4.7629/4.7680, and weakened against the British pound to 5.6302/5.6402 from 5.5868/5.5928 previously. Similarly, the ringgit performed weaker against its Asean peers. It dropped versus the Singapore dollar to 3.2749/3.2812 from yesterday's close of 3.2644/3.2682 and fell vis-a-vis the Thai baht to 12.9399/12.9700 from 12.7497/12.7747. The local note also slid against the Philippine peso to 7.60/7.62 from 7.53/7.54 yesterday and edged down versus the Indonesian rupiah to 257/257.6 from 255.1/255.5.
