Ringgit strengthens as US dollar index eases amid stronger job openings

THE ringgit appreciated against the US dollar on Wednesday morning, as the US Dollar Index (DXY) retreated from its previous level despite stronger-than-expected US job openings data. The DXY dropped to 103.419 points from 103.900 points, providing support for the ringgit.

At 8am, the ringgit traded at 4.4095/4170 against the greenback, slightly stronger than Tuesday’s closing rate of 4.4100/4175.

Dr. Mohd Afzanizam Abdul Rashid, Chief Economist at Bank Muamalat Malaysia Bhd, explained that US job openings increased to 7.74 million in January, surpassing the consensus estimate of 7.6 million.

This data pushed US Treasury yields higher, with two-year and 10-year yields rising by six and seven basis points, respectively, to 3.94% and 4.28%, Bernama quoted him saying.

Despite this, Dr. Afzanizam noted that global equities declined again due to ongoing uncertainty surrounding US tariffs, which left traders and investors in a defensive position. "Markets will be looking for more signs on whether the US Federal Reserve will shift toward a more dovish stance at next week’s Federal Open Market Committee (FOMC) meeting," he said. He added that tonight’s US Consumer Price Index (CPI) data would be closely monitored by traders.

In his outlook for the day, Bernama cited Dr. Afzanizam predicting the US dollar-ringgit pair would trade sideways.

The ringgit showed mixed performance against other major currencies. It gained against the Japanese yen, strengthening to 2.9778/9830 from 2.9921/9974 at Tuesday’s close.

However, it weakened against both the British pound and the euro, falling to 5.7068/7165 from 5.7035/7132 and 4.8121/8203 from 4.8091/8173, respectively.

Against ASEAN currencies, the ringgit experienced a mixed performance. It declined against the Singapore dollar to 3.3127/3188 from 3.3118/3177 and depreciated against the Thai baht to 13.0679/0967 from 13.0415/0695.

However, the ringgit remained unchanged against both the Philippine peso and the Indonesian rupiah, holding steady at 7.70/7.72 and 268.7/269.3, respectively. – March 12, 2025