KUALA LUMPUR (Sept 7): The Malaysian ringgit (MYR) strengthened further today as it breached the RM4.22 level to RM4.2175 against the U.S. dollar, after export data released yesterday continued to show accelerated growth.

Yesterday, the Malaysian export data showed growth at 30.9% in July, surpassing market expectations of 23%.

In a note yesterday, UOB Malaysia’s economist Julia Goh said the next target for the USD/MYR is RM4.22, after it took out RM4.248 in the morning trade yesterday.

“Trade surplus in MYR terms was RM8.03 billion, slightly lower than June’s RM9.83 billion. Year-to-date trade surplus is up 16.3% year-on-year to RM51 billion. This reinforces the surplus current account and supportive of further ringgit strength,” she said in her note.

While the ringgit has strengthened by 1.6% compared with a month ago and has grown by 6.01% year-to-date, it is still weaker by 3.3% from a year ago.

Meanwhile, AmBank Research highlighted in note today that the dollar was volatile, amid political tensions in the United States, while the ringgit’s strength is supported by exports.

“We expect it to continue its bullish bias and trade between our support level of RM4.1831, with a resistance of RM4.2526,” AmBank Research said.

The note said that focus will be on Malaysia’s interest rate decision today, whereby Bank Negara is expected to keep its benchmark rate unchanged.