Ringgit opens easier against US dollar

The local note is expected to experience a bit of setback today

THE ringgit opened lower against the US dollar today on better demand for the greenback as the US job data came in better than expected, prompting concerns that the US Federal Reserves (Fed) will continue to hike rates to combat inflation, dealers said.

At 9am, the local note eased to 4.3950/4000 against the US dollar from yesterday’s closing of 4.3860/3915.

Speaking to Bernama, SPI Asset Management managing partner Stephen Innes said he expects the ringgit to experience a bit of a setback today, as the solid private US jobs data ahead of tonight’s US Nonfarm Payroll data flipped the scales in favour of the more hawkish Fed, which provided a tailwind for the US dollar.

“Given the strong China reopening impulse, I think (the ringgit’s) losses will be limited, but local traders could be more defensive ahead of the critical US Jobs report,” he told Bernama.

Meanwhile, the ringgit was traded higher against a basket of major currencies.

It appreciated against the British pound to 5.2406/2466 from yesterday’s closing of 5.2781/2847 and strengthened against the euro to 4.6279/6332 from yesterday’s 4.6588/6647.

The ringgit also rose versus the Singapore dollar to 3.2694/2736 from 3.2748/2794 previously and improved vis-a-vis the Japanese yen to 3.2911/2954 from yesterday’s 3.3104/3148. — Bernama / pic TMR