At 9.20 am(0120GMT), the ringgit was traded at 4.0420/0470 to the greenback from 4.0470/0510 on Tuesday.
SINGAPORE: Asian currencies fell broadly on Friday, with the focus on whether U.S. jobs data will bolster expectations for the Federal Reserve to raise interest rates later this year.
The Singapore dollar hit a six-year low of 1.4366 against the U.S. dollar, weighed down by increasing expectations for Singapore's central bank to ease its exchange-rate based monetary policy later this month.
The Thai baht slipped to its lowest level in nearly nine years.
The Malaysian ringgit led the losses on the day, falling around 0.9 percent against the dollar.
The dollar is likely to stay firm against emerging Asian currencies ahead of the U.S. jobs data, said Christopher Wong, senior FX analyst for Maybank in Singapore.
"I still think dollar/Asia remains a buy," Wong said, adding that the dollar could gain a lift on the back of Fed tightening expectations if U.S. jobs data due later on Friday comes in stronger than expected.
A weak outcome, on the other hand, could add to worries about growth prospects for emerging market economies and weigh on Asian currencies, he said.
While emerging Asian currencies were broadly lower on the day, their weekly performance has been mixed.
Weekly gains have been led by the South Korean won, Indian rupee, and Taiwan dollar.
Losses for the week have been led by the Malaysian ringgit and Thai baht.
THAI BAHT
The baht touched a low of 36.68 versus the dollar, its lowest level since December 2006. For the week, the baht is down more than 1 percent.
"With no convincing signs of regional economic recovery, and with the prospects of a hard landing in China increasing daily, one can only assume a test of 37.00 is in the offing," said Stephen Innes, senior trader for FX broker OANDA in Singapore.
SOUTH KOREAN WON
Although the won retreated on Friday, the South Korean currency is still up about 0.9 percent against the dollar for the week.
The won has been supported this week by the unwinding of long dollar positions and dollar-selling by South Korean exporters, traders said.
MARKET POSITIONING
A Reuters survey showed that investors increased bearish bets on most emerging Asian currencies in the last two weeks after Federal Reserve officials kept open the possibility of an interest rate hike in 2015 and as worries of a global economic slowdown lingered.
Investors, however, trimmed bearish bets against the Chinese yuan and the Indian rupee, the survey showed. - Reuters
Win a prize this Mother's Day by subscribing to our annual plan now! T&C applies.
