KUALA LUMPUR: The ringgit ended higher against the greenback today, amid a bearish undertone in the greenback after the latest dovish statement from the US Federal Reserve policymakers.
The local currency was also supported by positive sentiment brought about by Bank Negara Malaysia’s move to maintain the interest rate at 1.75 per cent, signalling Malaysia's economic recovery is on track, a dealer said.
At 6 pm, the local currency rose to 4.1100/1140 against the US dollar from Thursday’s close of 4.1200/1240.
Bank Islam chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit also appears to be gaining some momentum today ahead of the US non-farm payroll (NFP) data to be released tonight.
Based on consensus estimates, April’s NFP could come in at 978,000 from 916,000 in April, he noted.
"The latest print on Initial Jobless Claims last week showed that claims for unemployment benefit in the US has trended down further to 498,000 from 590,000 in the preceding week.
"In that sense, there seems to be a risk-on mode which resulted in the appreciation of the ringgit against the US dollar, ” he told Bernama.
Meanwhile, the ringgit was traded mixed against other major currencies.
It slipped against the Singapore dollar to 3.0870/0916 from 3.0861/0903 on Thursday and depreciated versus the euro to 4.9632/9697 from 4.9625/9690.
The local note rose versus the yen to 3.7662/7702 from 3.7750/7790 yesterday and strengthened vis-a-vis the British pound to 5.7203/7267 from 5.7330/7402. - Bernama