Ringgit eases marginally against greenback after stronger US economic data
KUALA LUMPUR: The ringgit eased against the greenback at the close on Wednesday after the United States posted stronger economic data.
At 6 pm, the local note edged lower to 4.2435/2490 versus the US dollar from Tuesday's close of 4.2425/2485.
Bank Muamalat Malaysia Bhd's chief economist, Dr. Mohd Afzanizam Abdul Rashid, said stronger-than-expected US job openings in April lifted optimism about the American economy's resilience and helped lift the dollar.
US job openings rose 191,000 to 7.391 million by the last day of April, beating a forecast of 7.10 million vacancies.
"(Another) data point will be released in the United States (later tonight). The US Institute for Supply Management (ISM) Index for the services sector is expected to rise to 52 points in May from 51.6 points in April based on consensus estimates. Having said that, the US Dollar Index (DXY) continues to hover below 100 points. Currently, the DXY index is lingering around 99.145 points, down 0.08 per cent from the previous close,' he told Bernama.
SPI Asset Management managing partner Stephen Innes said traders were increasing interest in US assets, easing short term pressure on the dollar as expectations for interest rates shifted slightly.
"Meanwhile, there are quiet signs from Shanghai, via the US Chamber of Commerce president, that China may be starting to relax restrictions on rare earth exports. This has led markets to hope that a call between US President Donald Trump and Chinese President Xi Jinping could lead to a small breakthrough, or at least a longer pause in the current trade tensions,' he said.
At the close, the ringgit traded mostly higher against a basket of major currencies.
It rose against the Japanese yen to 2.9444/9486 from Tuesday's close of 2.9695/9739, gained vis-à-vis the euro to 4.8300/8362 from 4.8415/8484, but depreciated against the British pound to 5.7427/7502 from 5.7337/7418 previously.
The local note also traded mostly higher against its ASEAN peers.
It appreciated against the Singapore dollar to 3.2906/2951 from 3.2967/3016 on Tuesday, advanced versus the Thai baht to 12.9679/9911 from 13.0334/0603 and edged higher vis-a-vis the Philippine peso to 7.60/7.62 from 7.61/7.63.
However, it traded slightly lower versus the Indonesian rupiah at 260.4/260.8 compared to 260.1/260.6 on Tuesday. - Bernama
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