Tag: growth

Ringgit opens slightly lower as US GDP growth supports dollar

KUALA LUMPUR, JUNE 26 -- The ringgit opened slightly lower against the United States (US) dollar on Friday following stronger-than-expected US economic data that strengthened the country's currency. However, the reopening of the Strait of Hormuz increased risk appetite among investors, thus limiting the depreciation of the ringgit. At 8am, the local currency fell to 4.1170/1270 against the US dollar from 4.1160/1200 at yesterday's close. The US reported first-quarter gross domestic product (GDP) growth of 2.1 percent, beating consensus expectations of 1.6 percent, while the Personal Consumption Expenditures (PCE) inflation rate for May recorded 4.1 percent, in line with market expectations. Bank Muamalat Malaysia Bhd Chief Economist Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) fell 0.18 per cent to 101.431 points after the PCE data was announced, reflecting that consumer spending growth in the US was still weak. Therefore, the strengthening of the US dollar is expected to be difficult to maintain, especially in the context of lower crude oil prices following the 60-day period agreed for peace agreement negotiations between the US and Iran, he said. At the opening of trading, the ringgit traded lower against major currency groups. The ringgit weakened against the British pound to 5.4295/4427 from 5.4261/4314 at yesterday's close, fell against the euro to 4.6777/6891 from 4.6762/6807 and eased against the Japanese yen to 2.5445/5508 from 2.5437/5464 previously. The local currency, on the other hand, traded almost unchanged against regional currencies. The ringgit was unchanged against the Singapore dollar at 3.1742/1824 from 3.1742/1775 at yesterday's close, flat against the Indonesian rupiah at 229.4/230.1 from 229.4/229.7 and flat against the Philippine peso at 6.71/6.73 from 6.71/6.72 previously. However, the ringgit eased against the Thai baht to 12.3245/3618 from 12.3370/3538 previously. -- BERNAMA

KUALA LUMPUR, JUNE 26 — The ringgit opened slightly lower against the United States (US) dollar on Friday following stronger-than-expected US economic data that strengthened the country’s currency. However, the reopening of the Strait of Hormuz increased risk appetite among investors, thus limiting the depreciation of the ringgit. At 8am, the local currency fell to […]