KUALA LUMPUR – The ringgit extended last week’s gains, opening stronger against the US dollar today, supported by ongoing positive sentiment towards the local currency, an analyst said.
At 8.04am, the ringgit was trading at 4.1150/1280, up from Friday’s close of 4.1230/1280.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the ringgit is expected to remain positive, though some traders may take the opportunity to lock in profits following its recent broad-based appreciation.
On the global front, he noted mixed economic signals from the United States. The headline personal consumption expenditures (PCE) price index moderated to 2.2% in August, while the core PCE held steady at 2.7%.
Despite this, the US Federal Reserve is expected to maintain its monetary easing strategy in November and December.
“With that in mind, this week’s focus will be on US data, including the ISM Index for manufacturing and services, along with several key labour markets indicators such as the job openings and labour turnover survey (JOLTS), ADP employment change and nonfarm payroll (NFP),” he told Bernama.
Afzanizam highlighted that the immediate support level for the ringgit is at RM4.0728, with the currency potentially moving in that direction.
The ringgit traded mostly firmer against a basket of major currencies.
It weakened slightly against the Japanese yen, closing at 2.8833/8926 compared to 2.8804/8841 on Friday.
However, it strengthened against the euro, ending at 4.5960/6106 from 4.6009/6064, and advanced against the British pound to 5.5063/5237 from 5.5178/5245 last week.
The local currency also improved against Asean currencies.
It ticked up against the Singapore dollar to 3.2136/2240 from 3.2146/2187 at Friday’s close and inched up against the Philippine peso to 7.34/7.37 from 7.35/7.37.
The ringgit improved against the Indonesian rupiah to 272.0/273.0 from 272.5/273.0 last week and rose to 12.7045/7553 from 12.7202/7407 against the Thai baht previously. – September 30, 2024