After 19 months, the Malaysian economy doesn’t seem as bleak was before, with the year starting on a positive note as the Malaysian ringgit strengthens against the US dollar. The ringgit is on an upward trend with the US dollar valued at RM4.00 this morning.
On Monday, the week opened at a 19-month high of 3.9880/9930 against the US dollar, according to Bernama. It previously touched 3.98 on July 19, 2016. The report attributed the upward trend to the country’s trade surplus and an expected hike in the Overnight Policy Rate by Bank Negara this year.
A report in the New Straits Times also indicated that the country’s economy will continue to soar following solid trade numbers in November and there’s an expected 5.5% growth to the domestic economy.
“Both our exports and imports continued to perform favourably with November’s exports up for the 12th consecutive month at double digits by 20.4% year-on-year while imports gained 21.2% year-on-year, bringing the November’s trade balance at RM9.9 billion.
“We remain upbeat on the economic performance in part due to strong imports and capital (up 12.2% year-on-year) and intermediate goods (+13.8% year-on-year) which act as an injection to the overall economic activity. Besides, we foresee exports will continue to aid the overall economic activity,” AmBank Research said in the report.
AmBank Research also said the ringgit is projected at 4.00 to 4.02 against US dollar for the full-year average.
“We expect the US dollar/ringgit to remain on a strong note with our end-period projection at 3.95 which is our base case and best case is at 3.76,” it added.