Ringgit Opens Firmer Against US Dollar

The ringgit rebounded from yesterday’s losses to close slightly higher against the greenback today
The ringgit rebounded from yesterday’s losses to close slightly higher against the greenback today

The effect of the US Dollar performance could be attributed to Janet Yellen’s meeting with top officials in Beijing

KUALA LUMPUR — The ringgit opened firmer against the US dollar this morning on the back of softer United States (US) nonfarm payroll (NFP), which has helped to stablise the local note, said an analyst. 

At 9 am, the local unit climbed to 4.6555/6600 versus the greenback compared with 4.6655/6675 at Friday’s close.

The US NFP recorded 209,000 in June 2023, slightly below the expectation of 220,000, and is the lowest level since December 2020. 

Furthermore, SPI Asset Management managing director Stephen Innes said US Treasury Secretary Janet Yellen’s two-day meeting with top officials in Beijing, China had also helped to lift traders’ sentiment as the US-China tensions are expected to ease.

“However, traders could remain cautious ahead of US Consumer Price Index (CPI) report and China activity data this week which has been running weak,” he told Bernama.  

Bank Muamalat Malaysia Bhd chief economist and social finance head Dr Mohd Afzanizam Abdul Rashid said the US NFP data gave a mixed signal on Federal Reserve’s monetary policy decision in the upcoming Federal Open Market Committee (FOMC) meeting on July 25.

“On the surface, the US labour market appears to be tight as wage growth continues to expand at a rate of more than four per cent,” he said.

Uncertainties Over Rate Rise of US Dollar

Following this, Mohd Afzanizam opined that the ringgit could be somewhat positive today due to the continued uncertainties over the rate rise in the US.

Meanwhile, the ringgit was traded lower against a basket of major currencies. 

It decreased vis-a-vis the euro to 5.1043/1092 from 5.0765/0787 at Friday’s close, slid against the Japanese yen to 3.2668/2702 from 3.2601/2617 and shed against the British pound to 5.9707/9765 from 5.9466/9492 previously.

The local note traded mixed against other Asean currencies. 

The ringgit was lower versus the Singapore dollar at 3.4549/4585 from 3.4511/4528 at Friday’s close and declined against the Thai baht to 13.2484/2658 from 13.2471/2588.  

It was higher against the Indonesian rupiah at 307.4/307.8 from 308.0/308.3 and rose against the Philippine peso to 8.38/8.40 from 8.39/8.39 — Bernama