- Malaysia Ringgit (MYR) rises for a fourth day
- Strong foreign investor buying in capital markets lifts Ringgit
- US Dollar (USD) rises against major peers
- Nvidia earnings could impact sentiment
The US Dollar Malaysian Ringgit (USD/MYR) exchange rate is falling for a third on Wednesday for a third straight day. The pair was 0% lower in the previous session, settling on Tuesday at 4.3450. At 21:00 UTC, USD/MYR trades -0.05% at 4.3430 and is in a range of 4.3525 to 4.3390.
The Malaysian Ringgit is strengthening against the US dollar for a third straight day thanks to increased interest in the Malaysian bourses.
Foreign investors recorded net purchases of RM1.2 billion across August so far.
This shows that foreigners have demonstrated strong interest in the Malaysian capital markets, increasing demand for the Ringgit.
The Ringgit extended its rally today thanks to surging interest fueled by increased sentiment in the financial sector amid robust quarterly earnings.
The US Dollar is falling against the Malaysian Ringgit but rising against its major peers. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades at 101.10 at the time of writing, up 0.51% after yesterday’s losses.
The US dollar is rebounding from a 13-month low in a cautious market mood as investors wait for the results from Nvidia, the Wall Street darling.
It’s rare for a stock to be able to impact risk sentiment as strongly as Nvidia has. However, Nvidia is the litmus test for the AI trade, with the stock trading up 160% so far this year and accounting for around 7% of the S&P500, so disappointing earnings could impact the broader stock market, risk sentiment, and demand for riskier assets and currencies.
The results will be released after the US market closes today.
The US dollar fell to a 13-month low against its major peers earlier this week, weighed down by expectations that the Federal Reserve will cut interest rates throughout the remainder of 2024.
After his speech at Jackson, Federal Reserve chair Jerome Powell cemented expectations that the Fed would start to cut rates in September. However, the market is now pricing in 100 basis points worth of rate cuts this year, which could be overdone and may mean that the USD may have found a floor for now.
