Ringgit Opens Stronger At Rm4 10 On Improving Fiscal Outlook

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Despite job data falling to a three-year low, the market still expects a rate cut to occur, says analyst.
KUALA LUMPUR: The ringgit opened firmer today at around RM4.10 to the US dollar, with improving fiscal conditions supporting investor sentiment toward the local currency
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the ringgit has remained resilient despite US data pointing to a steady labour market.
“The US initial jobless claims fell to 191,000 last week versus consensus estimates of 219,000, while Challenger job cuts dropped to 71,300 in November from 153,000 in the previous month.
“Despite the data falling to a three-year low, the market still expects a rate cut to occur,” he told Bernama.
Yesterday, the ringgit rose to 4.1115/4.1165 against the greenback, compared with Wednesday’s close of 4.1200/4.1235.
This marked its highest level in four years and five months, surpassing the previous peak of RM4.1155 recorded on 16 June 2021.
At 8am, the ringgit strengthened to 4.1065/4.1155 against the greenback from yesterday’s close of 4.1115/4.1165.
At the opening, the ringgit also strengthened against major currencies.
It gained against the British pound to 5.4711/5.4831 from 5.4868/5.4935 at yesterday’s close, rose versus the euro to 4.7816/4.7921 from 4.8014/4.8075, and edged higher against the Japanese yen to 2.6470/2.6529 from 2.6555/2.6589.
The local note was also firmer against most Asean currencies.
It gained against the Singapore dollar to 3.1674/3.1746 from Thursday’s close of 3.1747/3.1788, rose versus the Indonesian rupiah to 246.5/247.2 from 246.8/247.3, and strengthened against the Thai baht to 12.8116/12.8501 from 12.8304/12.8520.
It was steady against the Philippine peso at 6.96/6.98. - FMT

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