Ringgit ends lower amid positive US economic data outlook

 US nonfarm payrolls are expected to rise to 65,000 in October from 29,000 in the previous month, says analyst.

KUALA LUMPUR:

The ringgit ended lower against the US dollar today, with a positive US economic data outlook lending support to the greenback.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the October US nonfarm payrolls (NFP), scheduled for release on Nov 6, are expected to reach 65,000 against 29,000 in the preceding month, while the unemployment rate is expected to remain sustained at 4.2%.

“A positive (economic) data point could mean the Fed could resume its rate tightening cycle in the December meeting, with odds for the Fed Fund Rate hike at 71.1% compared to 78.9% a month ago.

“Still, higher odds could mean a higher chance of rate tightening, which can be positive for the US dollar,” he told Bernama.

Afzanizam also said other regional currencies were mostly in the red against the US dollar as traders and investors were anxious about the prospect of a renewed attack on Iran after the mid-term US elections tomorrow.

“The US dollar-ringgit trading had progressively moved up from RM4.057 in the early morning trade to RM4.072 during the afternoon session, while the Thai baht, Indonesian rupiah and Japanese yen declined 0.24%, 0.13% and 0.06% respectively,” he said.

At 6pm, the local note eased to 4.0695/4.0735 against the greenback from last Friday’s close of 4.0555/4.0600.

Against major currencies, the ringgit traded mostly lower.

The ringgit slid against the British pound to 5.4621/5.4675 from last Friday’s close of 5.4461/5.4522, softened against the euro to 4.5652/4.5697 from 4.5413/4.5464, but inched up vis-a-vis the yen to 2.5766/2.5793 from 2.5782/2.5812 previously.

The ringgit was lower against its Asean peers.

It fell vis-a-vis the Singapore dollar to 3.1825/3.1862 from the previous close of 3.1753/3.1791, slipped versus the Thai baht to 12.0496/12.0661 from 12.0373/12.0561, edged down against the Indonesian rupiah to 224.1/224.4 from 223.4/223.8, and was slightly lower vis-a-vis the Philippine peso at 6.39/6.41 from 6.36/6.37 previously. - FMT