KUALA LUMPUR – The ringgit opened marginally higher today amid weak sentiment as traders reassessed their stance on the United States Federal Reserve (US Fed) possibly taking more time to reduce interest rates, an economist said.
At 8am, the local note stood at 4.2150/2240 against the US dollar compared to last Friday’s close of 4.2155/2240.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) rose to 102.572 points. Similarly, the two-year US Treasury note jumped 22 basis points to 3.92%.
Afzanizams said traders are reassessing their stand on the US Fed’s next move given the high possibility that a soft-landing scenario would materialise.
“Hence, the latest data points are dollar-positive. Therefore, the ringgit could lead on the weaker side today,” he told Bernama.
He said the latest US data points showed their economy is still cruising at a healthy speed with the nonfarm payroll coming in higher than expected to 254,000 in September from a revised 159,000 in August versus a previous 142,000.
The jobless rate gradually declined to 4.% in September while the labour force participation rate sustained at 62.7%for three consecutive months.
The ringgit was traded higher against major currencies.
The local note strengthened versus the euro to 4.6239/6337 from last Friday’s closing of 4.6484/6578. It was better versus the Japanese yen at 2.8329/8391 from 2.8779/8839 previously, it edged up vis-a-vis the British pound to 5.5309/5427 from 5.5505/5617.
The local currency performed mixed against Asean currencies.
It was higher versus the Thai baht at 12.6406/6797 from 12.7549/7861 but inched down vis-a-vis the Singapore dollar at 3.2301/2373 from 3.2489/2557 at last Friday’s close.
The ringgit was flat against the Indonesian rupiah at 272.1/272.9 since last Friday and was unchanged against the Philippine peso at 7.49/7.51 from yesterday’s close of 7.48/7.50. – October 7, 2024