KUALA LUMPUR: Ringgit Strengthens Ahead of 2024 GDP Data Release The Malaysian ringgit continues its upward trend against the US dollar and key ASEAN currencies as investors await the release of Malaysia’s 2024 gross domestic product (GDP) data today. Analysts are optimistic about the country’s economic performance, which is expected to bolster the currency further. At 8 am, the ringgit rose to 4.4325/4555 against the US dollar, up from Thursday’s close of 4.4535/4600. This marks a significant recovery, driven by positive economic indicators and a weaker US Dollar Index (DXY), which fell 0.58% to 107.313 points. Strong Economic Growth Projections Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid noted that Malaysia’s fourth-quarter (4Q) GDP growth is projected at 4.8%, with full-year 2024 growth expected to reach 5.1%. This steady growth trajectory suggests the economy is on solid footing, which could encourage Bank Negara Malaysia (BNM) to maintain the overnight policy rate (OPR) at 3.00%. “A stable OPR would support the ringgit, especially as other ASEAN central banks have begun easing their monetary policies,” he told Bernama. Ringgit’s Performance Against Major Currencies The ringgit showed mixed performance against major currencies. It appreciated against the euro, rising to 4.6373/6613 from 4.6419/6487, but weakened against the Japanese yen, slipping to 2.8978/9130 from 2.8917/8961. It also dipped slightly against the British pound, trading at 5.5690/5979 compared to 5.5615/5696 at Thursday’s close. Gains Against ASEAN Currencies The ringgit strengthened against ASEAN currencies, reflecting regional confidence in Malaysia’s economic outlook. It rose against the Singapore dollar to 3.2987/3166 from 3.2999/3049 and increased against the Thai baht to 13.1595/2380 from 13.1644/1906. The local note also gained against the Indonesian rupiah, trading at 270.9/272.4 compared to 272.1/272.7, and climbed against the Philippine peso to 7.63/7.68 from 7.67/7.68. Outlook for the Ringgit Mohd Afzanizam highlighted that the ringgit is poised for a strong start today, with the potential to break its immediate support level of RM4.45 against the US dollar. The rally in global equities and bond markets, coupled with Malaysia’s resilient economic growth, is expected to further bolster the currency. Conclusion With robust GDP projections and a stable monetary policy outlook, the ringgit is well-positioned to maintain its upward momentum. As Malaysia’s economy continues to show resilience, the currency’s performance against both major and regional currencies underscores growing investor confidence in the nation’s economic prospects.