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Malaysian Ringgit Strengthens Against US Dollar

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.

 

Comments

Nadza Zainal

Becoz brent is getting stronger

Aziz Benbaz

Everybody knows. That’s mean election sooner. Cause they want to use money.

Arief Rinaldi Lukman

US government shutdown pressure US Dollars againts all currency

Fts Fredd

Seems like more and more food news when opposition getting stronger. Great for rakyat and pleas continue to be stronger so we get better

Kazar Razak

The strength of the ringgit is due to:
1. Oil price is increasing
2. USD is getting weaker
3. Our 2017 GDP growth was good.

The opposition getting stronger (are they?) is really not a factor.

Ady Zulhaidi

Kepala bana ko food news

Fts Fredd

En Kazar, where the 3 points you’re measuring with and which data of the points you’re referring too?

Nawawi Saadi

Could it be because after PH’s decision that next PM will be Tun M?

Zq H Sulaiman

Nope, its just the US economy is going down. Malaysia’s economy is as stagnant as always.

Vinod Muniandy

Myr also strengthening against sgd.

Jonathan Fung

Mainly due to the suspension of tax on palm oil export to ease the excess in supply. Would like to see how well will it sustain with the suspension lifted 3 months later.

Cl Labs Cl

Does that mean tax reducing can increase our rm value?

Jonathan Fung

Tax reduction can encourage international buyers to buy and export our palm oil. Of course not all tax reduction will have the same effect. This tax reduction will increase the demand for MYR thus strengthening its value.

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