(Kuala Lumpur, Malaysia) – The US dollar fell for three consecutive days, hitting a low of more than two months. Meanwhile, the exchange rate of the Malaysian ringgit against the US dollar regained momentum and rose to 4.39 in early trading on Friday.
According to Bank Negara data, at 9:00 am, the ringgit was quoted at 4.3905 against the US dollar, up 0.26% from yesterday’s close of 4.402. At the same time, the ringgit was quoted at 3.3126 against the Singapore dollar, which also appreciated by 0.26% from 3.3211 yesterday.
The latest US industrial price data confirmed cooling inflation, reinforcing market expectations that US interest rates will peak. The US dollar fell for the third consecutive day on Thursday, with the US dollar index (DXY) against a basket of currencies falling to 101, the lowest level in more than two months since February 2.
The latest US Producer Price Index (PPI) rose 2.7% year-on-year in March, and the growth rate has narrowed for the eighth consecutive month, further confirming the cooling of US inflation.
In addition, the central bank of Singapore kept monetary policy unchanged today, having previously tightened policy five times in a row since October 2021; the Singapore dollar exchange rate then fell.
The total turnover of Bursa Malaysia was 200.73 million shares with a total value of RM85.27 million.
Tang Bolin, vice president of equity research at Lotte Trading Pte Ltd, pointed out that the Dow Jones Industrial Average rose 217 points, the Nasdaq rose nearly 70 points, and the yield on the 10-year US Treasury fell further to around 3.44%.
Domestically, the ringgit strengthened against the US dollar on Friday. Bolin believes buyers should return to equities as US inflation cools, and thus, consumer products and energy stocks are expected to continue to move higher as Brent continues to rise. Crude oil prices closed near $83.90 a barrel due to a weaker dollar.
Several stocks experienced price movements. Heavyweight CIMB Group Holdings Bhd rose three sen to RM5.78, while Tenaga Nasional Bhd and Telekom Malaysia Bhd each rose five sen to RM9.45 and RM5.18 respectively. Sime Darby Bhd rose four sen to RM2.31, while Maybank (Malayan Banking Bhd) rose two sen to RM8.82.
As for popular stocks, Serba Dinamik Holdings Bhd, Zen Tech International Bhd and Hong Seng Consolidated Bhd each rose 0.5 sen to 1.5 sen, 3 sen, and 15.5 sen respectively. NationGate Holdings Bhd rose seven sen to RM1.07, while Artroniq Bhd fell 2.5 sen to 84 sen.
In conclusion, the US dollar has been experiencing a downtrend due to cooling US inflation, resulting in the ringgit strengthening against the US dollar. The local stock market experienced movements due to this development, and experts predict that certain sectors will continue to perform well as the US inflation rate slows.