kuala lumpur: The ringgit opened stronger against the dollar today as the latest economic data in the US strengthened hopes of an early US interest rate cut, analysts said.
As of 9:05 a.m., the ringgit had risen to 4.5955/6005 ringgit against the US dollar from Thursday’s closing price of 4.6055/6125 ringgit.
Stephen Innes, managing director at SPI Asset Management, said weak economic indicators in the US, including a higher-than-expected unemployment rate and disappointing home sales data, should have a negative impact on the dollar.
“Currently, the main problem for the foreign exchange (FX) market is that it is pricing in the possibility of a 150 basis point rate cut scheduled for next March. , only hinting at a 75 basis point rate cut starting in the second half of this year.
“This discrepancy will be resolved once we receive the first U.S. nonfarm payrolls report in early January.
“A strong jobs report could delay an early Fed rate cut, while a weak report would likely solidify expectations for a March rate cut and lead to a sharply weaker dollar,” he told Bernama. Told.
Local banknotes rose against a basket of major currencies.
Against the Japanese yen it rose to 3.2452/2489 from Thursday’s 3.2723/2776, against the euro it rose from 5.1242/1323 to 5.0900/0955, and against the British pound it rose to 5.8537/8601 from yesterday’s close of 5.8932/9022. .
The ringgit also appreciated against ASEAN currencies.
The exchange rate against the Singapore dollar rose to 3.4830/4871 from 3.4972/5031, while the exchange rate against the Philippine peso improved to 8.28/8.30 from yesterday’s closing price of 8.30/8.31.
The local currency rose slightly against the Indonesian rupiah to 298.0/298.5 from 298.6/299.3, and against the Thai baht to 13.4050/4282 from 13.4979/5260 previously. – Bernama
