Ringgit opens higher against US dollar on strong economic data

KUALA LUMPUR, Aug 24 - The ringgit began the day trading stronger against the US dollar and a range of significant currencies on Monday, according to an analyst. By 8:05 am, the local currency had climbed to 4.0360/0410 per US dollar, marking an improvement from Friday's closing rate of 4.0365/0405. Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, suggested that the ringgit would likely continue to receive support in the near future due to strong macroeconomic indicators, such as the July export figures, which could suggest an upward revision in economic growth for the latter half of the year.

Afzanizam informed Bernama that the ringgit might attempt to surpass the RM4.03 level today, potentially reaching the RM4.05 mark. He pointed out that market participants would be closely watching long-term US Treasury yields, acknowledging that direct efforts to lower market interest rates might prove difficult due to the already massive US government debt exceeding $40 trillion.

Additionally, Afzanizam noted that investors would pay attention to the upcoming Jackson Hole Symposium, scheduled from August 27 to 29, for further indications of the US Federal Reserve's potential actions at its September meeting. At the start of trading, the ringgit showed gains across various major currencies, with the Japanese yen at 2.5403/5436 from 2.5449/5476, the British pound at 5.5108/5176 from 5.5118/5173, and the euro at 4.7161/7219 from 4.7227/7274.

The local currency experienced mixed results against regional currencies, strengthening against the Singapore dollar to 3.1805/1846 from 3.1809/1843 and against the Indonesian rupiah to 228.0/228.4 from 228.1/228.4, while remaining unchanged against the Philippine peso at 6.54/6.55 and decreasing against the Thai baht to 12.3675/3881 from 12.3474/3638.