Ringgit ends higher ahead of US jobs data

 Investors remained cautious ahead of the US non-farm payrolls report due tomorrow, says analyst.

KUALA LUMPUR:

The ringgit closed higher against the US dollar today, although gains were capped by a broadly firmer greenback as investors remained cautious ahead of the release of the closely watched US non-farm payrolls (NFP) report tomorrow, an analyst said.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the local currency traded within a narrow range of RM4.0872 to RM4.0933 throughout the day, reflecting cautious market sentiment.

“The US dollar was well supported as the rate hike thesis remains intact for now, with the US Dollar Index (DXY) edging 0.09% higher to 99.762 points,” he told Bernama.

He said market participants are now focusing on the US July employment report, which is expected to provide fresh clues on the Federal Reserve’s monetary policy direction.

Based on consensus estimates, the US economy is expected to have added 88,000 jobs in July, up from 57,000 in June, while the unemployment rate is projected to remain unchanged at 4.2%.

At 6pm, the local currency traded higher at 4.0875/4.0920 against the greenback from yesterday’s close of 4.0920/4.0960.

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

It gained against the Japanese yen to 2.5892/2.5922 from 2.5940/2.5967 at yesterday’s close and strengthened compared with the euro to 4.7162/4.7213 from 4.7222/4.7268, and advanced against the British pound to 5.4997/5.5058 from 5.5107/5.5161.

Against regional currencies, the ringgit also traded mostly higher.

It rose against the Singapore dollar to 3.1881/3.1919 from 3.1916/3.1950, edged up versus the Indonesian rupiah to 228.0/228.4 from 228.1/228.5 and increased against the Philippine peso to 6.72/6.73 from 6.73/6.74 at yesterday’s close.

However, the local currency fell against the Thai baht to 12.3628/12.3801 from 12.3216/12.3381 previously. - FMT