Ringgit easier against US dollar at opening

KUALA LUMPUR: The ringgit retreated from yesterday’s gains and opened easier against the US dollar amid mixed reactions over US job data, influencing appetite for the dollar, said a dealer.

At 9 am, the local note fell to 4.2200/2230 against the greenback from 4.2150/2180 at Thursday’s close.

ActivTrades trader Dyogenes Rodrigues Diniz said the US dollar remains stuck in a sideways lateralisation against the ringgit on Friday.

"The Initial Jobless Claims data brought the lowest reading since 1969, and this number, in line with the US Federal Reserves’ objective of achieving full employment, could end the tapering process sooner than expected and could also make the interest rate rise in 2022 to contain the advance of inflation in the US.

"This possible shift in outlook from dovish to hawkish could cause the ringgit to appreciate even more against the dollar in the coming days.

From a technical point of view, he said if the price manages to break the 4.2400-level, it could hit 4.2900.

"On the other hand, if it breaks the 4.1930 level, it could go to the 4.1400 level in a few days' time,” Diniz added.

The local note weakened vis-a-vis a basket of major currencies except against the euro.

The local note edged up against the euro to 4.7635/7669 from 4.7705/7739 yesterday.

However, the ringgit went down against the Singapore dollar to 3.0909/0933 from 3.0897/0921 at Thursday's close, eased versus the Japanese yen to 3.7220/7246 from 3.7117/7174, and declined against the British pound to 5.5772/5811 from 5.5655/5694. - Bernama