KUALA LUMPUR: The ringgit was higher against the US dollar at the close today following the US Federal Reserve’s (Fed) unaggressive stance on interest rate hikes as well as the prospect of fiscal spending in China to stimulate consumer spending, said an analyst.
At 6 pm, the local note was pegged at 4.6130/6165 against the greenback from Thursday’s close of 4.6235/6280.
SPI Asset Management managing partner Stephen Innes said the US jobless claims came in higher than expected, which suggests the tight US jobs market is easing; hence the Fed does not need to be as aggressive with rate hikes.
In addition, he noted that the prospect of fiscal spending in China to stimulate consumer spending has seen the yuan trade stronger over the past 24 hours, providing a positive attraction for the ringgit.
"If we get higher unemployment in the US coupled with the expected falling inflation through the summer, this will influence the Fed not to hike rates, weaken the dollar slightly and improve the outlook for the ringgit,” he told Bernama.
Meanwhile, the ringgit traded mostly lower against a basket of major currencies.
It advanced against the Japanese yen to 3.2721/2748 against 3.2781/2816 on Thursday but depreciated versus the British pound to 5.9014/9059 from 5.8543/8600 and fell vis-a-vis the euro to 5.0503/0541 from 5.0151/0200.
However, the local note traded mixed against other Asean currencies.
The ringgit was higher versus the Indonesian rupiah at 308.7/309.1 from 309.1/309.6 but decreased against the Thai baht to 13.2974/3140 from Thursday’s 3.2783/2981 and eased against the Singapore dollar to 3.4513/4542 from 3.4442/4481 yesterday.
It, however, was unchanged against the Philippine peso at 8.26/8.27. - Bernama
