Ringgit rebounds slightly against US$ ahead of 2Q GDP estimates

KUALA LUMPUR: The ringgit rebounded to open slightly higher against the US dollar on positive sentiment ahead of the release of Malaysia’s advance second quarter of 2024 (2Q 2024) gross domestic product (GDP) estimates today.

The Department of Statistics Malaysia (DoSM) is scheduled to release the 2Q 2024 GDP estimate data in the afternoon.

At 8 am, the ringgit inched up to 4.6665/6710 against the greenback from yesterday’s close of 4.6680/6710.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the numbers are expected to come in better than the 4.2 per cent growth recorded during the 1Q 2024.

“If the numbers turn out to be much better than the 1Q GDP, it will be ringgit-positive for today,” he told Bernama.

Yesterday, AmBank Group has projected the 2Q 2024 GDP to register a growth of 5.3 per cent year-on-year amid sustained domestic demand and better exports.

Mohd Afzanizam also noted there is optimism that the local note could stage a further appreciation towards the end of the year in light of the potential US Federal Reserve rate cut.

Meanwhile, the ringgit traded higher against a basket of major currencies.

The local currency strengthened versus the Japanese yen to 2.9685/9718 from 2.9827/9849 at Thursday’s close, it gained against the British pound to 6.0413/0471 from 6.0628/0667 yesterday and improved vis-a-vis the euro to 5.0856/0905 from 5.1021/1054 previously.

The ringgit is also mostly higher against ASEAN currencies.

It rose against the Singapore dollar to 3.4716/4754 from 3.4807/4832 at yesterday’s close, inched up versus the Indonesian rupiah to 288.8/289.2 from 288.9/289.2 previously, and appreciated vis-a-vis the Thai baht to 12.8927/9119 from 12.9750/9887.

It was flat against the Philippine peso at 8.01/8.02 from 8.01/8.02 yesterday. – Bernama