KUALA LUMPUR – The ringgit opened higher against the US dollar in early trade today as the market is focusing on the upcoming United States (US) Non-Farm Payrolls (NFP) figure, scheduled for release tonight.
At 9.10am, the local note rose to 4.5395/5485 against the greenback compared with 4.5535/5570 at yesterday’s close.
Bank Muamalat Malaysia Bhd chief economist and social finance head Mohd Afzanizam Abdul Rashid said the consensus believes that the NFP for July 2023 might be slightly lower at 200,000 compared to 209,000 in June.
“The US Federal Reserve’s (Fed) stance is data-dependent and if the NFP data turns out weak, it may prompt a pause in their rate hike campaign.
“However, the timing of any potential changes in the Fed’s position is uncertain,” he told Bernama while projecting the ringgit to trade within a narrow range of RM4.54-RM4.55 today.
Meanwhile, the ringgit was traded mostly higher against a basket of major currencies.
It rose against the Japanese yen to 3.1809/1875 from 3.1849/1876 yesterday and strengthened versus the euro to 4.9730/9829 from 4.9774/9813 yesterday, but depreciated vis-a-vis the British pound to 5.7765/7880 from 5.7679/7724 previously.
At the same time, the local unit traded higher against other Asean currencies.
The ringgit strengthened versus the Singapore dollar to 3.3869/3939 from 3.3923/3952 at the close on Thursday and rose vis-a-vis the Philippines’ peso to 8.16/8.19 from 8.20/8.21 previously.
It was also higher against the Indonesian rupiah at 298.8/299.6 from 299.7/300.2 yesterday and appreciated against the Thai baht to 13.1290/1604 from 13.1403/1565 previously. – Bernama, August 4, 2023
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