Monday, February 26, 2024
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Ringgit closes lower vs US dollar on lower IPI, technical correction

BERNAMA – The ringgit reversed the previous day’s gains to close lower against the greenback yesterday due to lower Industrial Production Index (IPI) data and a technical correction after appreciating over the last three trading days, an analyst said.

At 6pm, the ringgit slid to 4.6675/6725 against the greenback from Monday’s close of 4.6340/6400. According to the Department of Statistics Malaysia (DoSM), Malaysia’s IPI, which consists of three sectors, namely, mining, manufacturing and electricity, slipped by 0.5 per cent year-on-year (y-o-y) in September 2023.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said yesterday’s IPI showed that the Malaysian economy is susceptible to the external environment.

Hence, he said the central bank is expected to maintain their accommodative stance to support overall growth.

On another note, Mohd Afzanizam said it is quite common for the local note to undergo some technical correction given its sharp appreciation since last Friday’s publication of the United States Nonfarm Payroll (NFP).

“From the technical standpoint, the USD-RM is currently hovering slightly above the prevailing support level of MYR.6611 while the resistant level is at MYR4.7958,” he told Bernama.