KUALA LUMPUR: The ringgit traded easier against the US dollar on Friday morning but strengthened against other major currencies amid a cautious currency market, as authorities across Asia issued statements reaffirming their commitment to stabilise their respective currencies.
This happened as the US dollar is likely to stay firm with the United States (US) Nonfarm Payroll (NFP) set to be announced later tonight.
At 8 am, the local currency slid to 4.0120/0160 against the greenback from yesterday’s close of 4.0095/0140.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said consensus estimates are pencilling in the US NFP at 85,000 in May (April: 115,000), with the US unemployment rate remaining steady at 4.3 per cent.
"This will be the determining factor as elevated fuel prices would result in higher inflation, and steady labour market conditions could lead the US Federal Reserve to maintain its restrictive monetary policy stance,” he added.
Mohd Afzanizam added that the US dollar-Japanese yen pair had surpassed the 160 yen psychological level, prompting the government to issue a statement that it is ready to intervene in the foreign currency market.
"India is mulling to scrap the capital gains on bonds to lure foreign investors. Hence, the currency market is likely to be guarded, and the ringgit is no exception either.
"This is especially true when political development, such as state elections, is taking shape,” he added.
Back home, the ringgit traded higher against a basket of major currencies.
It rose against the British pound to 5.3845/3899 from 5.3872/3932 at the close on Thursday, gained against the euro to 4.6587/6634 from 4.6610/6663 yesterday, and appreciated versus the Japanese yen to 2.5075/5102 from 2.5081/5111 previously.
However, the local currency traded mostly lower against regional peers.
It strengthened versus the Singapore dollar to 3.1224/1258 from 3.1241/1279 at Thursday’s close, but eased against the Thai baht to 12.2710/2881 from 12.2708/2903 yesterday, and depreciated against the Philippine peso to 6.51/6.52 from 6.50/6.52 previously.
It was also slightly easier against the Indonesian rupiah at 222.2/222.6 versus 222.1/222.4 yesterday. - Bernama
