KUALA LUMPUR, July 18 – Continuous foreign net inflows into the Malaysian equities market, along with the United States Federal Reserve (US Fed) interest rate cut optimism, are among the reasons that propped up the ringgit to touch a fresh six-month high against the greenback today, said an analyst.
The ringgit traded at 4.6590 against the US dollar at 8.44 am, reaching the highest level since 6 pm on Jan 12, 2024, when it hit 4.6455, thanks to rising optimism among foreign investors towards the equities market.
At 6 pm, the ringgit closed at 4.6680.
Foreign investors remained net buyers on Bursa Malaysia for the second consecutive week, with net purchases totalling RM478.2 million last week.
Bursa Malaysia ended at a fresh three-year high yesterday after the FTSE Bursa Malaysia KLCI (FBM KLCI) settled at 1,633.54.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama that the rating upgrade on Malaysia by major foreign firms also positively impacted the ringgit.
Fitch Ratings has maintained Malaysia’s sovereign credit rating at BBB+ with a “stable” outlook, underpinned by a diversified economy and export base.
JP Morgan has also upgraded Malaysia’s rating from “underweight” to “neutral” after almost six years, crediting the country’s policy reforms, data centre investments and infrastructure build-up.
Mohd Afzanizam added that optimism about the US interest rate cut continued to propel emerging currencies, including the local note.
