Friday 29 Mar 2024
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KUALA LUMPUR (Nov 15): Bank Negara Malaysia (BNM) said today the ringgit depreciated 1.1% against the US dollar in the third quarter of 2019 (3Q19) on continued heightened risk aversion in global financial markets amid worsening trade tensions and concerns on global growth outlook.

BNM said in a statement today such sentiment led to investors' sustained demand for safe-haven currencies, including the US dollar.

"As a result, the US dollar broadly strengthened against most currencies, including the ringgit. Since October, however, the ringgit has appreciated by 0.7% against the US dollar (up to Nov 14) following inflows into the domestic bond market due to policy interest rate cuts by global and regional central banks to address growth concerns.

"For the year to date (up to Nov 14), the ringgit has depreciated by 0.5% against the US dollar. Going forward, external uncertainties will continue to affect the movements of regional currencies, including the ringgit," BNM said.

On Malaysia's financing conditions, BNM said net financing expanded 4.8% on an annual basis amid continued moderate growth in loans.

"However, bank financing remains forthcoming for homebuyers and SMEs. Demand for business financing also continued to improve with higher growth in loan applications," BNM said.

In currency markets today, the ringgit strengthened to 4.1493 against the US dollar. The exchange rate so far today was between 4.1475 and 4.1528.

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