kuala lumpur:The ringgit strengthened against the dollar in early trade on Friday, analysts said, ahead of the release of US non-farm payrolls (NFP) data later today.
As of 8:02am, the ringgit had strengthened against the dollar to 4.4145/4300, compared with Thursday’s closing price of 4.4250/4305.
Stephen Innes, managing partner at SPI Asset Management, said the dollar had fallen for the third day in a row as traders reduced their bullish dollar positions ahead of the NFP report, a trend not seen since September. I couldn’t.
“This pullback may signal the beginning of a seasonal pattern in which companies and local exporters increase dollar selling.
He told Bernama: “This dynamic is particularly important if the US Federal Reserve chooses to cut interest rates in December against the backdrop of a possible rate hike from the Bank of Japan and perhaps a less dovish European Central Bank. The relationship could become even stronger.”
Overnight, the offshore Chinese yuan gained some strength due to the dollar’s sharp depreciation.
Innes said all these factors combined to suggest a positive start for the ringgit, as global and local currency markets readjust in response to changes in monetary policy conditions and seasonal trading patterns. This suggests that future transactions may be favorable.
However, the ringgit has mostly depreciated against a basket of major currencies.
Against the British pound it fell to 5.6316/6514 from Thursday’s 5.6286/6356, and against the euro it fell to 4.6719/6883 from 4.6586/6644 the previous day. Against the Japanese yen, it rose to 2.9385/9490 yen from 2.9439/9478 yen previously.
Meanwhile, local banknotes mostly appreciated against ASEAN currencies.
The Singapore dollar rose slightly to 3.2976/3094 from Thursday’s close of 3.2985/3029, while the Philippine peso firmed to 7.62/7.66 from 7.64/7.66.
The local currency also appreciated against the Thai baht to 12.9423/9991 from 12.9462/9710 yesterday, and slightly changed against the Indonesian rupiah to 278.2/279.4 from 278.9/279.4 last time.
