Ringgit opens easier against US$ after previous week's rally

During the morning session, the Malaysian ringgit was observed trading at 4.5355/5415 against the US dollar, slightly higher compared to the previous closing rate of 4.5255/5280 on Friday. Stephen Innes, the managing director at SPI Asset Management, expressed a cautious view on the ringgit's recent improvement, considering the negative outlook in

China and the anticipated rate cuts that may weaken the Chinese yuan. He suggested that the ringgit might experience a minor retreat or consolidate its gains from last week. In an interview with Bernama, Innes shared his insights on the potential trajectory of the currency.

Stephen Innes emphasized the significance of China's second-quarter GDP and Industrial Production data, which will dictate the direction of the ringgit today. He explained that positive data from China would strengthen the Chinese yuan and subsequently have a positive impact on the ringgit.

On the other hand, Dr. Mohd Afzanizam Abdul Rashid, the Chief Economist and Head of Social Finance at Bank Muamalat Malaysia Bhd, suggested that the ringgit could stabilize at its current level as market participants anticipate the upcoming Federal Open Market Committee (FOMC) meeting in the United States.

These two perspectives highlight the factors influencing the ringgit's movement, with attention on China's economic data and the forthcoming FOMC meeting.

In addition, Stephen Innes expressed concerns about the sustainability of China's economic recovery, which he believes will prompt the People's Bank of China to maintain an accommodative monetary policy stance.

He further stated, “Taking all factors into consideration, I anticipate the MYR/USD exchange rate to hover around the range of RM4.52-RM4.53 today.”

Meanwhile, the ringgit faced depreciation against a basket of major currencies.

Against the euro, the ringgit weakened to 5.0902/0969 from the previous close of 5.0799/0827 on Friday. It also declined against the British pound, slipping to 5.9370/9448 from 5.9338/9371 previously. Furthermore, it slid versus the Japanese yen to 3.2747/2795 from 3.2659/2679 last week.

In addition, the ringgit faced depreciation against other ASEAN currencies. It dipped against the Thai baht, trading at 13.0857/1091 compared to the previous close of 13.0689/0814. It also declined against the Singapore dollar, sliding to 3.4321/4369 from 3.4263/4287. Moreover, it eased against the Indonesian rupiah, weakening to 303.1/303.7 from 302.5/302.8 last week. Lastly, it weakened against the Philippines' peso, trading at 8.33/8.35 from 8.31/8.33 previously.