Ringgit Closes Higher Against Us Dollar Breaches 4 70 Level

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KUALA LUMPUR: The ringgit was well supported today, breaching the RM4.70 level versus the US dollar at the close as further economic data from the US pointed to an interest rate cut.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the drop in US job openings in April suggests that the demand for labour is cooling, which could imply wage growth may not be too strong going forward and pave the way for a rate cut by the US Federal Reserve (Fed).
“The US Dollar Index (DXY) remains below 105 points although it is trending up.
“While the rate cut camp is gaining traction, it remains highly uncertain as to what the Fed might say on its stance in the upcoming Federal Open Market Committee meeting next week,” he said.
However, he said, for now, incoming data has been supportive of the rate cut thesis.
At 6pm, the ringgit improved to 4.6970/4.6985 against the greenback from 4.7005/4.7030 at yesterday’s close.
At the close, the ringgit traded mostly higher against a basket of major currencies.
The local unit edged up against the euro to 5.1070/5.1087 from 5.1099/5.1126 at yesterday’s close and strengthened versus the Japanese yen to 3.0099/3.0111 from 3.0293/3.0311
However, the local note slipped vis-a-vis the British pound to 6.004/6.0023 from 5.9988/6.0020 previously.
Meanwhile, the ringgit was higher against its Asean peers.
It improved against the Thai baht to 12.7994/12.8091 from 12.8443/12.8568 at yesterday’s close, increased versus the Singapore dollar to 3.4857/3.4871 from 3.4868/3.4889 previously, rose vis-a-vis the Indonesian rupiah to 288.3/288.6 from 289.7/290, and gained ground versus the Philippine peso to 7.99/7.99 from 8.00/8.01. - FMT

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