Ringgit end higher boost by Q3 GDP data

15 Nov 2019 / 19:07 H.

KUALA LUMPUR: The ringgit ended higher against the US dollar as investors reacted positively to the third-quarter (Q3) gross domestic product (GDP) print, which came within market expectations.

At 6pm, the ringgit was better at 4.1515/1545 against the greenback from Thursday’s close of 4.1560/1590.

FXTM market analyst Han Tan said the local unit remains Asia’s best performer this month.

“The ringgit was relatively unperturbed by Malaysia’s Q3 GDP print as the data was in-line with market expectations.

“The economic slowdown in Malaysia is in keeping with the global trend, although a formalised but limited US-China trade agreement should improve the outlook for Asian economies,“ he told Bernama.

Overall, the ringgit traded within the 4.14-4.16 range this week, as the resurgent US dollar forced most Asian currencies to give up gains from the previous week.

Meanwhile, AxiTrade chief Asia market strategist Stephen Innes said following the GDP growth, the next overnight policy rate (OPR) rate cut will likely be early next year.

Bank Negara Malaysia (BNM) Governor Datuk Nor Shamsiah Mohd Yunus said the growth in Q3 brings the overall performance of the first three quarters to 4.6 per cent.

On OPR, BNM she said would continue to assess the balance of risks to domestic growth and inflation to ensure that the monetary policy stance remains conducive to sustainable growth amid price stability.

Meanwhile, headline inflation stood at 1.3 per cent in Q3.

Innes said the market sentiment continued to be affected by US-China trade war.

The local note was traded mixed against other major currencies.

The ringgit was stronger against the Singapore dollar to 3.0479/0505 from 3.0492/0532 yesterday and went up vis-a-vis the yen to 3.8192/8230 from 3.8269/8300.

However, the local note was lower against the British pound to 5.3446/3497 from 5.3396/3451 and against the euro to 4.5737/5787 from Thursday’s close of 4.5716/5757. — Bernama

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