Ringgit ends marginally lower as greenback gets lift from positive US economic data

Early trading saw the ringgit rise against the US dollar before profit-taking pushed it lower, says analyst.

KUALA LUMPUR:

 The ringgit ended marginally lower against the US dollar on Friday, as healthy US economic data lifted the greenback.

At 6pm, the local currency dipped to 4.0555/4.0605 versus the greenback from yesterday’s close of 4.0535/4.0595.

Bank Muamalat Malaysia Bhd’s chief economist, Afzanizam Rashid, stated that the ringgit was generally on a stronger footing against the US dollar in the early trading session today, but it gave way to some profit-taking.

He said that while the ringgit may seem to have more legs to appreciate, the main hurdle now is how traders and investors view the American dollar going forward.

“The (latest) initial jobless claims have shown that the state of the labour market in the US remains fairly healthy. Therefore, the US Federal Reserve would be inclined to keep the benchmark interest rate steady when the Federal Open Market Committee (FOMC) members meet at the end of this month,” he told Bernama.

At the close, the ringgit traded mixed against a basket of major currencies.

It dipped versus the Japanese yen to 2.5637/2.5670 from 2.5594/2.5633 at yesterday’s close, gained vis-à-vis the euro to 4.7076/4.7134 from 4.7167/4.7236, and edged up against the British pound to 5.4332/5.4399 from 5.4467/5.4548.

The local currency was mostly lower against its Asean peers.

The ringgit climbed versus the Singapore dollar to 3.1479/3.1521 from 3.1491/3.1540, but was lower vis-à-vis the Indonesian rupiah at 240.1/240.5 from 239.9/240.3, slipped against the Philippine peso to 6.83/6.84 from 6.81/6.83, and fell versus the Thai baht to 12.9115/12.9332 from 12.9096/12.9349. - FMT