The local currency gained momentum as recent US data suggested the Fed might skip a rate hike next month, says analyst.
At 6pm, the ringgit edged up to 4.0785/4.0820 against the greenback from yesterday’s close of 4.0790/4.0850.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the ringgit, along with other Asian currencies, gained some momentum today as recent US data points suggested that the Fed might skip a rate hike decision next month. He added that weaker consumer sentiment could weigh on household spending, which accounts for about two-thirds of the US economy.
Afzanizam said market players would closely monitor the ADP employment and Personal Consumption Expenditures (PCE) reports due later tonight.
“Based on the consensus estimates, the ADP employment, which measures the employment creation in the private sector, is expected to rise to 73,000 in September from 38,000 in the previous month, while PCE inflation is likely to be sustained at 3.7% in August. Should weak job numbers and a lower inflation rate prevail, perhaps the US dollar could be experiencing further correction in the near-term,” he told Bernama.
At the close, the ringgit traded lower against a basket of major currencies.
It fell against the euro to 4.6324/4.6363 from 4.6235/4.6303 at yesterday’s close, retreated vis-à-vis the British pound to 5.4162/5.4209 from 5.3937/5.4016, and depreciated against the Japanese yen to 2.5969/2.5993 from 2.5869/2.5909.
Against Asean currencies, the local currency fell against the Singapore dollar to 3.1943/3.1973 from 3.1885/3.1934 at yesterday’s close, eased against the Thai baht to 12.1521/12.1666 from 12.1402/12.1632, and dipped against the Indonesian rupiah to 227.9/228.2 from 226.8/227.2.
The ringgit was higher against the Philippine peso at 6.51/6.52 from 6.52/6.53 yesterday. - FMT
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