Latest news with #MalaysianRinggit
BusinessToday
a day ago
- Business
- BusinessToday
Ringgit Breaking 4.20 Hinges On Upcoming Economic Data
After a brief dip to 4.26 against the US dollar last Friday, the Malaysian Ringgit (MYR) showed resilience this week, trading within the expected 4.23–4.25 range. This recovery was partly attributed to a subdued US Dollar Index (DXY), as reported by Kenanga Research. The US dollar experienced initial pressure following increased US tariffs on steel and aluminum, coupled with threats of a 'revenge tax' from President Donald Trump. Further weakness came from a softer ISM manufacturing print and growing fiscal concerns. However, the greenback later rebounded on stronger JOLTs job openings data and renewed optimism surrounding potential trade talks between the US and China. Despite this rebound, softer ADP private payroll figures and rising jobless claims have signaled potential cracks in the US labor market. Globally, Thursday's European Central Bank (ECB) rate cut had minimal impact on bolstering the USD. The Euro managed to hold its gains amid indications that further easing might be paused soon. Market attention now shifts to tonight's Non-Farm Payrolls (NFP) data. A figure below 100,000 new jobs could intensify recession fears and strengthen the case for a US Federal Reserve rate cut. However, markets are likely to await next week's core inflation data, which is anticipated to show a 0.3% month-over-month increase, before making significant moves. Looking ahead, Kenanga Research notes lingering concerns about renewed trade and bond market volatility once the 90-day US reciprocal tariffs pause concludes in July. The trajectory of US-China negotiations will be critical. A breakthrough in these talks could offer the US dollar short-term support, although fiscal-driven term premiums might cap any substantial gains. Domestically, the Ringgit's performance will hinge on upcoming economic indicators. If industrial production (IPI) and retail sales data point to continued economic resilience in Malaysia, the Ringgit could appreciate further. Kenanga Research suggests the Ringgit could potentially test the 4.21–4.24 per US dollar range next week. Technically, the USDMYR currency pair remains neutral, trading close to its 5-day Exponential Moving Average (EMA) of 4.24. Near-term direction is expected to be guided by trade-related headlines, with immediate support identified at 4.22 and resistance at 4.25. USD GBP EUR JPY100 CHF AUD CAD SGD HKD100 3 Jun 2025 4.2390 5.7426 4.8509 2.9704 5.1885 2.7522 3.0894 3.2982 54.0382 4 Jun 2025 4.2490 5.7474 4.8366 2.9508 5.1597 2.7451 3.0983 3.2947 54.1636 5 Jun 2025 4.2325 5.7395 4.8375 2.9667 5.1764 2.7518 3.0956 3.2942 53.9509 6 Jun 2025 4.2250 5.7367 4.8376 2.9395 5.1512 2.7503 3.0916 3.2851 53.8508 Related
The Print
09-05-2025
- Business
- The Print
Waning trust in US dollar has spurred a rally in Asian currencies. Central banks may have to step in
Allowing the domestic currency to strengthen as part of the trade negotiations with the US could also have triggered the rally in Asian currencies. Since the crisis of the mid-90s that led to capital flight and steep depreciation of Asian currencies, many economies in the continent, particularly export-oriented ones, have built large piles of dollars, and invested them in US treasury securities. But with the recent flip-flops on tariff policy, the trust in the dollar may be waning, leading to a wave of dollar-selling. The latest fallout of the Trump tariff-induced uncertainties has been the sharp appreciation of Asian currencies. Led by Taiwan dollar, Asian currencies experienced record appreciation in the last few days as US President Donald Trump's trade policies fuelled weakness of the US dollar. Taiwan dollar's unprecedented surge Taiwanese currency saw the strongest gain, nearly eight percent in the last month. In the last few years, Taiwan has strategically focused on forging strong trade and investment ties with the US, and enjoys a huge trade surplus with the US. As a consequence, the exporters and investors have built large piles of dollar and dollar-backed assets. With the volatility in the dollar index, exporters and investors, including life insurers, concerned about the build-up of large stock of unhedged dollar holdings are reportedly offloading their stocks of dollars. Other Asian currencies, such as the South Korean Won, Japanese Yen, Malaysian Ringgit, Singapore dollar and Indian rupee, have also appreciated against the dollar. Whether the rally in Asian currencies is going to be sustained or is a temporary blip, hinges on several unknowns, but what is certain is that the next few weeks are likely to witness swings in the currency market. This could likely prompt some central banks to step up intervention to protect their currencies from a rapid appreciation. With the unwinding of dollar holdings, the move towards diversification of assets has gained impetus. Globally, investors and central banks are gradually diversifying their assets. Increasing the share of gold in total reserves by Asian central banks is also part of the diversification strategy. Also Read: India's 4.4% fiscal deficit target hinges on solid revenue. Global conditions pose a challenge Role of Asia in US trade The other possible explanation of the rapid surge in Asian currencies is that some central banks are allowing their currency to strengthen to cede their comparative advantage, in return for tariff concessions from the US. While there is no certainty on this explanation, the direction and composition of US trade sheds light on why the US would indeed prefer stronger Asian currencies. Notably, the US has long complained that Asian countries have kept their currencies weak through intervention. Latest data shows that almost 40 percent of US imports are sourced from Asia. The table below shows US' top ten imports based on HS 4-digit classification. For the top ten US imports, Asian economies are the prominent suppliers. For instance, automatic data process machines account for 4.3 percent of the total US imports. Of this, 62.6 percent of the imports are sourced from Asian economies. Similarly in other top US imports, Asian economies have a sizeable presence. Stronger Asian currencies, and consequently a weaker dollar, would help address the trade imbalances with Asia. For instance with Taiwan, the US has a trade deficit of USD 74 billion in the calendar year 2024. Rupee appreciation, oil decline & FPI flows The rupee has also strengthened against the dollar since the second half of April, but driven by a mix of international and domestic factors. From Rs 86.76 to dollar, the rupee has appreciated to Rs 85.45, as of 2 May. The rupee was bolstered by strong foreign portfolio flows and a sharp decline in crude oil prices amid weakness in the US dollar. Oil prices have fallen amid concerns of supply glut as OPEC (Organisation of the Petroleum Exporting Countries) and its allies have agreed to raise oil output by 411,000 barrels a day, starting June. Falling oil prices could cushion India's import bill and support the rupee. After being net sellers for three consecutive months, foreign portfolio investors turned net buyers of Indian equity in April. FPIs bought USD 510 million worth of equity. The positive sentiment of foreign investors was underpinned by weakening of the US dollar and optimism over a US-India trade deal. While the intervention data comes with a lag of two months, there are indications that the Reserve Bank of India has been intervening sporadically to prevent a sharp appreciation of the rupee. On the back of a weaker dollar, the RBI is likely cutting down its outstanding short dollar position in the forward market. RBI's short dollar book position rose significantly in the last few months as it intervened in the onshore and offshore derivatives market to support the rupee, following a sharp dollar surge. As of February 2025, RBI had a net short position of USD 88.8 billion—a sharp jump from net short position of USD 14.6 billion in September. Amid an environment of weaker dollar, the RBI is likely opting to moderate its high net short position rather than rolling over the short position. While the cutting of short position could reduce its headline reserves, the impact could be mitigated due to valuation gains on account of rise in gold prices. How much can Asian currencies strengthen is a challenge that Asian countries would have to grapple with in the wake of the global trade war. Radhika Pandey is an associate professor and Pramod Sinha is a fellow at the National Institute of Public Finance and Policy (NIPFP). Views are personal. Also Read: IMF growth outlook is cautiously optimistic. It seems to leave out impact of larger disruptions in US
BusinessToday
05-05-2025
- Business
- BusinessToday
Mr DIY Saw Its Q1 PAT Jump 20%, Declares RM132 Million For Dividend Payout
MR D.I.Y Group Berhad delivered a strong start to the financial year, reporting a 20.2% year-on-year increase in profit after tax to RM174.1 million for the first quarter ended 31 March 2025. Revenue for the quarter grew 10.0% y-o-y to RM1.3 billion, driven by like-for-like store sales growth and new store openings during the quarter. Transaction volume rose 9.1% to 48.2 million, supported by the strategic expansion of its store network from 1,292 stores in 1QFY2024 to 1,465 stores as of 31 March 2025. Gross profit ('GP') margin improved by 2.0 percentage points ('p.p.') y-o-y to 47.8%, reflecting lower average inventory costs arising from the economies of scale from our global procurement, and the strengthening of the Malaysian Ringgit. As a result, GP rose 14.9% y-o-y to RM601.2 millionProfit before tax ('PBT') increased 20.0% y-o-y to RM234.1 million, underpinned by the higher GP, while PAT climbed 20.2% to RM174.1 million. Net earnings margin stood at 13.9%, up from 12.7% in the same quarter last year. The Group has declared a dividend of RM132.6 million for 1QFY2025, up 40% y-o-y and representing a 76.1% payout ratio Related
Time Out
05-05-2025
- Time Out
There are free shuttle bus services from Singapore to Mid Valley Southkey in Johor Bahru this weekend
Whether you cross the Causeway regularly or are plotting a Vesak Day weekend escape, here's something to get excited about – YouTrip is offering free shuttle bus rides from Singapore to Johor Bahru. To mark the recent launch of its Malaysian Ringgit wallet in mid-April, YouTrip has rolled out complimentary shuttle services to Mid Valley Southkey in JB. The promotion is currently ongoing, with the final rides operating over the weekend of May 10 to 11, 2025. Where and when are the pick-up and drop-offs for the free shuttle bus service by YouTrip? The shuttle service departs from Opp Kranji MRT bus stop and drops passengers off at the North Entrance of Mid Valley Southkey. Services run from 9am to 9.30pm at 30-minute intervals. Passengers are advised to arrive at the pick-up point at least 10 minutes before their scheduled departure. Do present both your booking confirmation email and the Y-Number from the back of your YouTrip card for verification. Who is entitled to book the free shuttle bus service by YouTrip? The shuttle service is open to YouTrip users with a valid account. Seats must be pre-booked and are allocated on a first-come, first-served basis. Each user may reserve only one seat per time slot for each leg of the journey. All passengers are required to book seats for both legs of the journey – meaning you will have to take the bus to enter and return from JB.
