KUALA LUMPUR: The ringgit ended higher against the US dollar and regional currencies yesterday as the greenback remained subdued following a lack of clear guidance on the United States interest rate outlook.
At 6pm, the local note appreciated to 4.0780/0830 against the greenback from Wednesday’s close of 4.0920/0965.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said market participants were focused on Federal Reserve (Fed) chairman Kevin Warsh’s statement made at the European Central Bank Forum in Sintra, Portugal on Wednesday.
He told Bernama that the panel session showed that the Fed chairman was unwilling to provide forward guidance, particularly on the future direction of interest rates.
“This suggests that the Fed remains data-dependent, with markets now turning their attention to incoming US economic data, especially the Nonfarm Payrolls report due on Thursday.
“Consensus estimates suggest that the US economy added 114,000 jobs in June, while the unemployment rate is expected to remain steady at 4.3%,” said Mohd Afzanizam.
