KUALA LUMPUR: The ringgit opened slightly lower against the US dollar on Wednesday but higher against major currencies as investors stayed cautious ahead of a busy week of US labour-market data.
At 8 am, the local currency inched down to 4.0475/0745 against the greenback from yesterday’s close of 4.0445/0495.
IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said traders are keeping a defensive stance, which tends to weigh on emerging-market currencies such as the ringgit at the start of the day.
Among the US economic data highlights for this week are the Job Openings and Labour Turnover Survey (JOLTS) and ADP employment data.
"The broader backdrop for the dollar is becoming less supportive. The late-December rebound has lost momentum, and markets are positioning for US interest rates to remain on hold later this month, which would gradually erode the dollar’s yield advantage.
"As that plays out, Malaysia’s strengthening trade flows and resilient domestic demand provide a fundamental anchor for the ringgit, helping to limit downside and stabilise the currency as global sentiment normalises,” he told Bernama.
At the open, the ringgit traded higher against a basket of major currencies.
It strengthened against the Japanese yen to 2.5836/5902 from 2.5865/5899 on Tuesday, gained against the euro to 4.7303/7420 from 4.7373/7432 and rose against the British pound to 5.4637/4772 from 5.4742/4810 previously.
However, the local currency traded mixed against ASEAN peers.
It edged up against the Indonesian rupiah to 241.5/242.2 from 243.1/241.7 and increased against the Singapore dollar to 3.1604/1684 from 3.1608/1649.
The local note slid versus the Thai baht to 12.9678/13.0094 from 12.9383/9592, and remained unchanged against the Philippine peso to 6.83/6.85 from 6.83/6.84 yesterday. - Bernama
