KUALA LUMPUR, April 24 — The ringgit edged higher against the US dollar and other major currencies in early trade on Friday, supported by resilient Malaysia trade data for March. At 8 am, the local currency was marginally higher at 3.9620/9680 against the US dollar, compared with 3.9660/9710 at Thursday's close.
According to Bank Negara Malaysia data, the ringgit has appreciated 3.2% year-to-date, making it the second best-performing currency in Asia after the Singapore dollar. The positive performance is attributed to Malaysia's strong trade surplus, which widened to RM12.8 billion in March, up from RM10.5 billion in February, driven by higher exports of electrical and electronics products.
Analysts at Kenanga Investment Bank noted that the ringgit's strength is also supported by expectations of a potential rate cut by the US Federal Reserve later this year, which could weaken the US dollar further. However, they cautioned that global uncertainties, including geopolitical tensions and commodity price volatility, could impact the currency's trajectory.
The ringgit also gained against the Singapore dollar, rising to 3.0245/0280 from 3.0280/0320, and against the Japanese yen, strengthening to 2.8230/8270 from 2.8280/8320. Against the British pound, the ringgit appreciated to 4.8230/8280 from 4.8280/8330.
