Ringgit closes firmer on easing geopolitical tensions and weak US data
KUALA LUMPUR : The ringgit ended firmer today, supported by easing geopolitical tensions and weaker US economic data that continued to pressure the greenback.
SPI Asset Management managing partner Stephen Innes said that the sustained ceasefire between Israel and Iran has dampened safe-haven demand for the US dollar.
'In addition, the US consumer confidence index deteriorated by 5.4 points in June, falling to 93.0 from 98.4 in May,' he told Bernama.
Innes said that Federal Reserve chair Jerome Powell's recent cautious remarks, interpreted as keeping the door open to a possible rate cut, had pushed US treasury yields lower, providing some relief to Asian currencies.
'Although trading remained subdued, the ringgit held on to modest gains at the close,' he added.
At 6pm, the local currency rose to 4.2335/4.2405 versus the greenback from yesterday's close of 4.2410/4.2465.
At the closing, the ringgit traded higher against a basket of major currencies.
It appreciated against the Japanese yen at 2.9070/2.9120 from 2.9256/2.9296, escalated versus the British pound to 5.7631/5.7726 from 5.7707/5.7782, and improved against the euro to 4.9113/4.9194 from 4.9225/4.9289 yesterday.
The local currency traded mixed against its Asean counterparts.
It advanced vis-a-vis the Singapore dollar to 3.3061/3.3121 from 3.3130/3.3178, and appreciated against the Thai baht to 12.9584/12.9858 from 12.9793/13.0021 at yesterday's close.
Meanwhile, it eased against the Indonesian rupiah to 259.7/260.2 from 259.3/259.7, and slipped against the Philippine peso to 7.46/7.48 from 7.41/7.44, previously.
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