Ringgit extends uptrend against greenback in early trade

 

KUALA LUMPUR: 

The ringgit extended its recent positive momentum to trade slightly higher against the US dollar in the early session on Friday.

At 8am, the local currency climbed to 4.4600/4700 against the greenback, compared with Thursday’s close of 4.4610/4650.

However, the US Dollar Index (DXY) remained elevated overnight as it reached 107.146 points before settling at around 106.972.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid noted that the latest weekly US initial jobless claims data fell more than expected to 213,000, indicating that the US labour market was still robust.

Additionally, the European Central Bank (ECB) is facing calls for lower interest rates.

“This will put the US dollar (on the front foot) as the US Federal Reserve (Fed) is likely to ease its monetary policy at a measured pace. As such, the ringgit is likely to trade range-bound due to lower prospects for swift rate cuts by the Fed,” he told Bernama.

The ringgit traded higher against a basket of major currencies.

It rose against the British pound to 5.6125/6250 from 5.6342/6393 at the close on Thursday and gained against the euro to 4.6692/6796 from 4.6907/6949 yesterday.

However, it declined against the Japanese yen to 2.8929/8998 from 2.8892/8920 previously.

The local unit traded mixed against Asean currencies.

It rose against the Singapore dollar to 3.3118/3197 from 3.3189/3222 and appreciated against the Thai baht to 12.8305/8737 from 12.8748/8923 at Thursday’s close.

It traded almost flat against the Philippine peso at 7.56/7.58 from 7.56/7.57 and the Indonesian rupiah at 279.9/280.7 from 279.9/280.4. - FMT