malaysiangThe ringgit opened firmer against the greenback on Friday, gaining support ahead of the release of the United States (US) Nonfarm Payroll (NFP) data later today.
At 8 am, the local note stood at 4.2160/2240 against the US dollar compared to yesterday’s close of 4.2185/2250.
SPI Asset Management managing director Stephen Innes said Friday’s NFP report could significantly alter the outlook for the ringgit, shifting sentiment from bearish to bullish.
He said market whispers suggest a lower figure, creating nervous anticipation. If the data falls short of expectations, it may offer a much-needed lift to the ringgit.
‘However, a stronger-than-expected report could push US yields higher, reigniting inflation concerns and leaving the ringgit vulnerable to further declines,’ he told Bernama.
Meanwhile, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the US Dollar Index climbed to 101.980 points.
Escalating tensions in the Middle East, with further Israeli strikes on Beirut,
pushed Brent crude oil to US$77.62 per barrel, raising concerns over potential disruptions to global oil supplies.
He said this conflict drives traders to seek the US dollar’s safety.
‘Additionally, positive US economic data hints at the possibility of a gradual easing of Federal Reserve monetary policy, supporting further dollar strength.
‘With the ringgit already in an overbought zone, it may continue to weaken. The USDMYR broke its resistance level of RM4.2128, with the new resistance now at RM4.3259,’ Mohd Afzanizam said.
The ringgit rose against the euro to 4.6524/6612 from 4.6555/6627 yesterday, was marginally higher versus the Japanese yen to 2.8710/8766 from 2.8711/8757 but inched down vis-a-vis the British pound to 5.5348/5453 from 5.5330/5415.
Meanwhile, the local currency performed mixed against ASEAN currencies.
It was higher vis-a-vis the Singapore dollar at 3.2511/2575 from 3.2523/2575 at yesterday’s close and increased versus the Thai baht to 12.7233/7582 from 12.7270/7520.
The ringgit,
however, was almost flat against the Indonesian rupiah at 273.2/273.8 from 273.4/273.9 and was unchanged against the Philippine peso at 7.48/7.50.
Source: BERNAMA News Agency
