As of November 20, 2024, the Malaysian ringgit (MYR) opened higher at 4.4675/4755 against the US dollar, a slight improvement from the previous day's rate of 4.4705/4750. This uptick is attributed to stronger domestic economic indicators, although analysts caution that market sentiments remain cautious due to various global economic developments and geopolitical tensions [aeea34b4].
The Malaysian economy has demonstrated robust growth, with a reported GDP increase of 5.3% in the third quarter of 2024. Datuk Seri Abdul Rasheed Ghaffour, the governor of Bank Negara Malaysia, noted that this growth has bolstered investor confidence, contributing to the ringgit's appeal. Additionally, the recent removal of Malaysia from the US currency manipulation watch list has further strengthened the currency's position [259fb577].
Dr. Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, highlighted that while the ringgit has improved against the Japanese yen, it has faced depreciation against the British pound and euro. The mixed performance against regional currencies includes gains against the Philippine peso and Indonesian rupiah, but losses against the Singapore dollar and Thai baht [aeea34b4].
Despite these domestic advancements, concerns linger regarding the potential impact of US interest rates and the policies of the incoming US President-elect, Donald Trump, whose inauguration is scheduled for January 20, 2025. Analysts are closely monitoring these developments, as they could influence market dynamics and the ringgit's trajectory in the near future [259fb577].
In the previous week, the ringgit had opened at 4.4810/4885 against the dollar, reflecting a cautious market sentiment. The fluctuations in the ringgit's value have been shaped by various factors, including the recent decline in US Treasury yields, which fell to 4.33% before rising to 4.40%, and the overall performance of the US Dollar Index, which peaked at 106.81 points before settling around 106.21 points [0b815c5c].
Looking ahead, the Malaysian economy's political stability and ongoing reforms are expected to bolster its investment appeal, providing a counterbalance to external pressures from the US economic landscape. Immediate support for the ringgit is identified at RM4.0728, with analysts optimistic about its potential for further gains in the coming weeks [0b815c5c].