Ringgit opens firmer versus US dollar on better IPI data

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KUALA LUMPUR (Nov 10): The ringgit opened firmer against the US dollar on Wednesday (Nov 10), galvanised by better Malaysia’s Industrial Production Index (IPI) data for September 2021.


At 9.15am, the local note opened higher at 4.1490/1520 versus the greenback from 4.1505/1513 at Tuesday’s close.

ActivTrades trader Dyogenes Rodrigues Diniz said the higher-than-expected IPI data gave a boost to buying support for the ringgit.

Malaysia’s IPI increased by 2.5% year-on-year in September 2021, attributed to a 4% growth in the manufacturing index and a 0.4% rise in the electricity index, said the Department of Statistics Malaysia (DOSM) on Tuesday.

Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said on a month-on-month basis, the IPI increased by 3.7%, driven by the manufacturing and electricity sectors.

Meanwhile, Diniz said from a technical standpoint, if the US dollar-ringgit pair breaches the 4.1600 level, it could rise to 4.1930 within a few days.


“On the other hand, if it breaks down from 4.1380, it could drop further to 4.0950,” he told Bernama.

At the opening, the ringgit was traded mostly higher against a basket of major currencies.

The local note rose vis-a-vis the British pound to 5.6252/6293 from 5.6326/6332 at Tuesday’s close and improved against the Singapore dollar at 3.0797/0822 from 3.0849/0852.

It also appreciated against the euro to 4.8099/8134 from 4.8112/8133 on Tuesday, but fell against the Japanese yen to 3.6769/6799 from 3.6677/6694 previously.-BERNAMA