KUALA LUMPUR: The ringgit opened firmer against the US dollar on Friday after weaker-than-expected US jobs data for June reinforced expectations that the Federal Reserve (Fed) could adopt a more cautious approach to interest rates.
At 8.04 am, the local currency rose to 4.0705/0805 against the greenback from Thursday's close of 4.0780/0830.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said US nonfarm payrolls increased by 57,000 in June, well below the consensus forecast of 114,000.
He said payroll figures for April and May were also revised lower, signalling that the labour market may not be strong enough to justify an immediate interest rate hike by the Fed.
"From a technical analysis perspective, the ringgit against the US dollar is already in oversold territory. This suggests the ringgit could appreciate further against the US dollar in the near term.
"Yesterday, the ringgit closed 0.33 per cent higher against the US dollar at RM4.0805. As such, we expect the US dollar/ringgit to hover between RM4.06 and RM4.07 today,” he told Bernama.
At the opening, the ringgit was stronger against a basket of major currencies.
It appreciated against the British pound to 5.4296/4430 from 5.4401/4467 at Thursday's close, strengthened against the Japanese yen to 2.5214/5277 from 2.5295/5327, and edged up against the euro to 4.6497/6612 from 4.6526/6583.
The local currency also traded higher against regional currencies.
It rose against the Philippine peso to 6.61/6.63 from 6.62/6.63 previously, strengthened against the Indonesian rupiah to 226.2/226.8 from 226.6/226.9, advanced against the Thai baht to 12.2384/2744 from 12.2411/2613, and gained against the Singapore dollar to 3.1483/1563 from 3.1517/1558 at Thursday's close. - Bernama
