Ringgit extends gain against US dollar in early trade

KUALA LUMPUR: The ringgit extended yesterday's gains to open higher against the US dollar today boosted by strong sentiment towards the local currency, dealers said.
At 9am, the local unit stood at 4.0760/0800 from 4.0830/0860 at yesterday close.
A dealer said the demand for the ringgit has strengthened following the positive outlook from international rating agencies and research houses, projecting Malaysia's economy to end 2017 on a firm note and forecasting a stronger 2018.
World Bank Group expected Malaysia's 2017 gross domestic product (GDP) to grow at 5.8% year-on-year, the highest annual growth rate since 2014 and for 2018, the economy would remain strong with a growth of 5.2%.
Meanwhile, Moody's Investors Service projected Malaysia would be able to maintain its strong growth trend with the economy's long-term potential growth to stay robust at around five percent, significantly stronger than most other A-rated sovereigns.
It said Malaysia's fiscal deficit would narrow from 2.8% of GDP in 2018, as and when strong nominal GDP growth boost revenue.
"These positive outlook help spur risks appetite for the ringgit making it among Asian currencies biggest gainer," a dealer told Bernama.
Against other major currencies, the ringgit was traded mostly higher except for yen where it depreciated to 3.6286/6328 from yesterday's close of 3.6200/6233 yesterday.
The ringgit rose against the Singapore dollar to 3.0276/0321 from 3.0294/0321 on Thursday, strengthened versus the British pound to 5.4769/4835 from 5.4929/4985 on Thursday and appreciated against the euro to 4.8040/8091 from 4.8253/8305 yesterday. — Bernama