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Ringgit firms as July exports surge, USD/MYR slips toward June lows
Commerzbank said exports jumped 38.0% year on year in July, and the trade surplus widened to MYR22.5 billion as USD/MYR fell 0.3% to 4.05.
Commerzbank, via FXStreet, pointed to strong Malaysia trade data as support for the Malaysian ringgit, saying July exports rose 38.0% year on year, its fourth consecutive month of double-digit growth led by electronics and machinery.
The bank said shipments to the US surged 79.8% in July, while exports to China rose 30.2%, and it linked the strength to resilient external demand and an AI-driven electronics cycle tied to hyperscalers’ capex plans.
Commerzbank also highlighted that imports increased 36.4% year on year, driven by robust capital goods purchases, and that Malaysia’s trade surplus widened more than expected to MYR22.5 billion, versus MYR15.8 billion previously.
On currency markets, FXStreet reported that USD/MYR fell 0.3% to 4.05 and has declined for four straight sessions, with the pair near its lowest level since early June as a weaker US dollar supported the ringgit.
Looking ahead, Commerzbank flagged potential headwinds from high base effects, geopolitical risks, and El Niño-related weather disruptions, while noting that about two-thirds of Malaysia’s exports to the US remain exempt despite a proposed 10% US tariff tied to the Section 301 forced labour investigation.