Ringgit opens lower as robust US payrolls strengthen dollar

  • Forex
  • Thursday, 06 Feb 2020

KUALA LUMPUR: At 9am, the ringgit was quoted at 4.1220/1250 against the US dollar from 4.1150/1200 on Wednesday.

AxiCorp's chief market strategist Stephen Innes said robust US economic data has lessens the likelihood of a Federal Reserve interest rate cuts, thus supporting the greenback, which harms Asian currencies.

Payroll processor ADP reported that US private sector employment increased by 291,000 jobs in January, its highest rate since May 2015.

"While it's hard to ignore that global risk markets are starting to price in peak novel coronavirus fear, economies and their currencies, as well as stock markets with keen trade linkages into China like Malaysia (ringgit & FBM KLCI), may continue to struggle through the early part of the year as the doomy knock-on effect from the China economic slow down hits home," he added.

Locally, he said, key economic data rolls to be released at the end is much crucial, which should capture the local effects the virus has had on export. Against other major currencies, the ringgit was traded mostly higher, except the yen.

It rose against the Singapore dollar to 2.9768/9801 from 2.9817/9857 on Wednesday but depreciated vis-a-vis the Japanese yen to 3.7520/7558 from 3.7511/7560 yesterday. The local currency was also stronger against the euro to 4.5321/5371 from 4.5364/5435 and firmer against the British pound to 4.5321/5371 from 5.3767/3836 previously. - Bernama

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3


Did you find this article insightful?


Next In Business News

MCO 2.0 to cost Malaysia RM600m daily, Zafrul says
Two Menang Corp shareholders seek removal of four directors
Federal Court rules in favour of house buyers over late delivery
Beshom to take over listing status of Hai-O Enterprise
Karyon reports 4 workers tested positive for Covid-19
KLCI reverses gains, falls 7.64 points
Dollar drops as traders prepare for Yellen to talk up stimulus
Norway awards O&G exploration rights to 30 firms
China's Geely teams up with Tencent on smart car tech
Japan's biggest business lobby shrugs off calls for wage hikes

Stories You'll Enjoy