Ringgit eases as investors await key US data

 Investors remained cautious ahead of the release of key US labour market data, says analyst.

KUALA LUMPUR:

The ringgit ended the week marginally lower against the US dollar as investors remained cautious ahead of the release of key US labour market data, while expectations over the Federal Reserve’s interest rate path continued to support the greenback, analysts said.

Quintex Intel global strategist Stephen Innes said the market expects a balanced US jobs report, with non-farm payrolls expected to increase by around 60,000, although recent labour market data had been unusually volatile.

“Even if payroll growth comes in softer than expected, the market still believes that the Fed will continue to focus on inflation risks.

“This suggests that the US dollar could weaken modestly next week, but a more sustained decline appears unlikely as long as oil prices remain firm,” he told Bernama.

Meanwhile, Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid noted that the ringgit traded on firmer footing for most of the day against the US dollar, before paring its gains towards the close.

He said regional currencies – particularly the Indonesian rupiah – found support after Indonesian president Prabowo Subianto moved closer to appointing a new Bank Indonesia governor following Perry Warjiyo’s resignation, helping to improve sentiment across regional markets.

At 6pm, the local currency slightly eased to 4.0885/4.0930 against the greenback from Thursday’s close of 4.0875/4.0920.

Meanwhile, the local currency traded firmer against a basket of major currencies.

It inched up against the Japanese yen to 2.5813/2.5843 from 2.5892/2.5922 at yesterday’s close, rose against the euro to 4.7132/4.7184 from 4.7162/4.7213, and gained vis-a-vis the British pound to 5.4949/5.5010 from 5.4997/5.5058 previously.

However, the ringgit traded mostly lower against regional currencies.

It declined against the Singapore dollar to 3.1911/3.1949 from 3.1881/3.1919 yesterday, and dipped versus the Thai baht to 12.3665/12.3843 from 12.3628/12.3801.

Meanwhile, the ringgit was slightly better against the Philippine peso at 6.71/6.72 from 6.72/6.73 yesterday, but slid against the Indonesian rupiah to 228.4/228.7 from 228.0/228.4 previously. - FMT