Ringgit slides BNM global central bank meetings

Traders await Bank Negara Malaysia's meeting as the ringgit opens lower against the US dollar. US GDP figures may impact currencies.

The ringgit opened lower against the US dollar on Tuesday as traders eagerly await the first Bank Negara Malaysia's Monetary Policy Committee (MPC) meeting of the year, scheduled for today and tomorrow. SPI Asset Management managing director Stephen Innes highlighted the primary focus for the week as central bank meetings across various regions, including in Malaysia, Japan, and the eurozone. He noted that while no significant alterations are expected in the monetary policies of developed markets, robust fourth-quarter (4Q) US Gross Domestic Product (GDP) figures might lead to a modest uptick in US interest rates, offering some support to the US dollar. Traders will be closely monitoring these developments to assess their impact on the ringgit and other currencies.

Innes also mentioned that most traders are closely observing forthcoming US macroeconomic data, including the 4Q GDP (expected on Jan 25) and the Personal Consumption Expenditures deflator (Jan 26). These figures could potentially shape expectations regarding a potential US interest rate reduction in March, which in turn could weaken the US dollar and bolster the ringgit. At 9:05am, the ringgit depreciated to 4.7350/4.7400 against the greenback compared to Monday's close of 4.7280/4.7335. The ringgit was traded lower against a basket of major currencies, slipping vis-à-vis the Japanese yen, the British pound, and the euro, among others. However, the ringgit was unchanged against the Philippine peso at 8.40/8.42.

Chief Minister Datuk Seri Hajiji Noor said Sabah is well on its way to fully adopting the green technology revolution with a RM20 billion green steel project at the Sipitang Oil and Gas Industrial Park (Sogip). It is important to stay up-to-date on these developments by following Daily Express's Telegram channel for the latest news.

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