Ringgit rebounds higher against US$ on mixed US economic data

KUALA LUMPUR: The ringgit reversed its losses to open higher against the US dollar on Friday due to cautious sentiments following the release of mixed United States (US) macroeconomic data, an analyst said.

At 9 am, the local note rose to 4.4575/4615 versus the greenback from yesterday’s closing rate of 4.4605/4660.

ActivTrades trader Dyogenes Rodrigues Diniz said the US gross domestic product (GDP) data for the first quarter of 2023 (1Q 2023) came in below expectations at 1.1 per cent versus the forecast of 2.0 per cent, which in turn took a toll on the US dollar.

However, he said, the Initial Jobless Claims number which also came below market expectation at 230,000 against 248,000 forecasted continued to support the greenback.

"As these two macroeconomic indicators pointed in opposite directions, we saw little direction in the market after their release.

"From a technical point of view, it is possible that the USD/MYR will rise further to the 4.4700 region, where it should encounter temporary resistance," he told Bernama.

At the same time, the ringgit traded mostly higher against a basket of major currencies.

It edged up against the Japanese yen to 3.3245/3277 from 3.3337/3381 at the close on Thursday and increased vis-a-vis the euro to 4.9180/9224 from 4.9235/9296 yesterday, but fell against the British pound to 5.5696/5746 from 5.5506/5575 previously.

Meanwhile, the local note traded mixed against Asean currencies.

It had weakened versus the Singapore dollar at 3.3392/3424 from 3.3379/3423 at yesterday's close and declined against the Philippines’ peso to 8.01/8.03 from 8.00/8.02 previously.

However, the ringgit went up against the Thai baht to 13.0504/0679 from 13.0626/0841 on Thursday and appreciated against the Indonesian rupiah to 303.0/303.4 from 303.2/303.7 yesterday. - Bernama