At 9.05am, the ringgit appreciated to 4.5955/4.6005 against the US dollar from Thursday’s close of 4.6055/4.6125.
SPI Asset Management managing director Stephen Innes said the weak economic data in the US, which included a higher-than-expected unemployment rate and disappointing home sales figures, should negatively impact the dollar.
“Currently, the main issue in the foreign exchange (FX) markets is that they are pricing in a potential interest rate cut of 150 basis points, with an expected cut in March next year. However, the US Federal Reserve (Fed) is only indicating a 75 basis points cut starting in the second half of the year.
“This discrepancy will be resolved once we receive the first US non-farm payroll report in early January.
“A robust jobs report could delay an early Fed rate cut, while a weak report is likely to solidify the expectation of a rate cut in March and lead to a significant weakening of the US dollar,” he added.
The local note traded higher against a basket of major currencies.
It appreciated against the Japanese yen to 3.2452/3.2489 from 3.2723/3.2776 on Thursday, rose against the euro to 5.0900/5.0955 from 5.1242/5.1323 and strengthened vis-a-vis the British pound to 5.8537/5.8601 from 5.8932/5.9022 at yesterday’s close.
The ringgit was also traded higher against Asean currencies.
It was higher against the Singapore dollar at 3.4830/3.4871 from 3.4972/3.5031 and improved vis-à-vis the Philippine peso to 8.28/8.30 from 8.30/8.31 at yesterday’s close.
The local currency edged up against the Indonesian rupiah to 298.0/298.5 from 298.6/299.3 and strengthened against the Thai baht to 13.4050/13.4282 from 13.4979/13.5260, previously. - FMT
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