Ringgit Rebounds On Selling Activities In Us Dollar

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KUALA LUMPUR: The ringgit rebounded to open higher against the US dollar after some selling activities in the greenback, said an analyst.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the US dollar retreated given the weaker-than-expected US Institute for Supply Management (ISM) purchasing managers’ index for the non-manufacturing sector, which came in at 51.4 points against consensus estimates of 52.8 points.
“The latest data points have led investors to lock in gains in the US dollar given that the US Federal Reserve (Fed) is likely to take more time to cut the rates.
“Nonetheless, the situation remains hazy whether such a correction in the US dollar will be sustainable,” he noted.
Last night, US Fed chairman Jerome Powell reportedly reiterated that there is no rush to cut interest rates.
Afzanizam said market players will be awaiting the US nonfarm payrolls data on Friday to provide direction for the foreign exchange market.
The ringgit was traded mostly lower against a basket of major currencies.
At 9am, the local currency rose to 4.7380/4.7415 versus the US dollar from yesterday’s closing of 4.7545/4.7575.
The local currency gained versus the Japanese yen to 3.1259/3.1285 from 3.1329/3.1351 at Wednesday’s close, but it depreciated against the euro to 5.1365/5.1403 from 5.1192/5.1224 yesterday and weakened vis-a-vis the British pound to 5.9945/5.9989 from 5.9769/5.9807 previously.
The ringgit was traded higher against Asean currencies.
It appreciated versus the Thai baht to 12.9432/12.9581 from 12.9519/12.9653 on Wednesday and improved vis-a-vis the Indonesian rupiah to 297.5/297.9 from 298.6/298.9.
The ringgit was also firmer versus the Philippine peso at 8.40/8.42 compared with 8.42/8.43 at yesterday’s close and climbed against the Singapore dollar to 3.5151/3.5180 from 3.5159/3.5183. - FMT

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