Although the ringgit began the day worse versus the US dollar, it is likely to strengthen today due to an expected statement from China regarding a significant economic boost.
The ringgit was trading at 4.7590/7625 against the US dollar at 9:01 a.m., down from yesterday’s closing rate of 4.7570/7620.
Dr. Mohd Afzanizam Abdul Rashid, chief economist of Bank Muamalat Malaysia Bhd, predicted that the Chinese government would unveil a strong economic stimulus in response to accusations that it isn’t doing enough to boost investor confidence.
“A multitude of Purchasing Managers Index data additionally indicate that major economies are enduring fairly well, particularly in the services sector,” he continued.
He restated that given the ringgit’s oversold status, a correction is to be expected. This implies that the currency may experience a recovery vs the US dollar today.
The value of the ringgit decreased in relation to a major currency basket.
It slid against the British pound to 5.9973/6.0017 from 5.9653/9715 earlier, against the euro to 5.1202/1240 from 5.1109/1163 yesterday, and against the Japanese yen to 3.2188/2214 from 3.2012/2048 at Tuesday’s closing.
Compared to Asean currencies, the local note often saw lower trading.
At yesterday’s close, the ringgit gained ground on the Indonesian rupiah, closing at 302.4/302.9 vs 302.8/303.2.
However, it decreased in value relative to the Thai baht to 13.3864/4019 from 13.2970/3169 yesterday, in relation to the Singapore dollar to 3.5425/5454 from 3.5321/5361, and in relation to the Philippine peso to 8.48/8.50 from 8.45/8.46.
