Ringgit strengthens against greenback
KUALA LUMPUR: The ringgit continued to strengthen against the US dollar on Wednesday, as the US economy is perceived as fragile amid the Trump administration's continued push for disruptive trade policies.
At 8 am, the local note inched higher to 4.2370/2640 versus the greenback from Tuesday's close of 4.2425/2485.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit is expected to remain strong as the US economy is still seen as fragile, according to survey data such as the US Institute for Supply Management (ISM) Index and Consumer Sentiment Index.
'The data indicates business and consumers have become more cautious in their spending going forward as the Trump administration pushes forward their agenda on trade policies that are hostile and disruptive to global supply chains,' he told Bernama.
Meanwhile, UOB Kay Hian Wealth Advisors Sdn Bhd's head of investment research, Mohd Sedek Jantan, said the US dollar index (DXY) climbed to 99.2 from 98.9.
'Improved US labour data is lending support to the greenback. Job openings rose to 7.4 million in April, exceeding forecasts of 7.1 million.
'Wage growth is expected to continue outstripping inflation on average, which should underpin consumer spending and broader economic momentum,' he said.
Mohd Sedek said greater clarity on the US labour market will come with Friday's nonfarm payrolls report.
At the opening, the ringgit traded higher against a basket of major currencies.
It rose against the Japanese yen to 2.9456/9646 from Tuesday's close of 2.9695/9739, climbed vis-à-vis the euro to 4.8234/8541 from 4.8415/8484, and inched up against the British pound to 5.7331/7696 from 5.7337/7418 previously.
Against its ASEAN peers, the ringgit rose against the Singapore dollar to 3.2868/3082 from 3.2967/3016 on Tuesday's close and improved vis-à-vis the Thai baht to 12.9786/13.0777 from 13.0334/0603 previously.
It was slightly higher versus the Indonesian rupiah, at 259.7/261.5, compared to 260.1/260.6 on yesterday's close, and gained against the Philippine peso to 7.60/7.66 from 7.61/7.63 previously.
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