Slow demand for ringgit ahead of GDP results

The ringgit opened lower on lack of demand for the local note with investors staying on the sidelines ahead of Bank Negara Malaysia’s (BNM) second-quarter gross domestic product (GDP) announcement tomorrow.

At 9 am, the ringgit stood at 4.1910/1960 against the greenback versus 4.1870/1900 recorded at Wednesday’s close.

A dealer said analysts were cautious with their forecast with some projecting a higher growth for the quarter under review while some view it to be slightly lower.

“StanChart (Standard Chartered) for example has lowered its 2019 GDP growth forecast for Malaysia to 4.6 per cent from 4.9 per cent, due to impact from a poor external environment,” he said.

The research house noted while resilient private consumption should buffer the economy against external uncertainty, growth is not immune to the poor external environment.

Against a basket of other currencies, the local note was traded mostly higher, except to the yen, which it declined to 3.9564/9622 from 3.9359/9398.

The local note rose against the British pound to 5.0539/0604 from 5.0575/0628, strengthened vis-a-vis against Singapore dollar to 3.0158/0204 from 3.0192/0224 and increased against the Euro to 4.6696/6769 from 4.6802/6840. – Bernama

Read more at https://www.thestar.com.my/business/2019/08/15/slow-demand-for-ringgit-ahead-of-gdp-results#T3HHhXlba3620HcR.99