Ringgit Higher Against US Dollar in Early Trade
Market Analysis
The ringgit advanced against the US dollar in early trade on Friday ahead of the US non-farm payrolls (NFP) data that will be released later today, said an analyst.
US Dollar Decline
The US dollar registered its third consecutive day of decline, a trend not seen since September, as traders pared back bullish dollar positions ahead of the NFP report.
Factors Affecting the Ringgit
According to Stephen Innes, managing partner at SPI Asset Management, the pullback in the US dollar may signal the onset of a seasonal pattern where corporate and local exporters ramp up dollar selling.
This dynamic could intensify, especially if the US Federal Reserve opts for a rate cut in December against a backdrop of a potential Bank of Japan rate hike and a possibly less dovish European Central Bank.
Overnight Developments
Overnight, the offshore Chinese yuan caught some lift from the broadly weakening dollar.
Ringgit Performance
The ringgit traded mostly lower against a basket of major currencies, falling against the British pound to 5.6316/6514 from 5.6286/6356 on Thursday and declining versus the euro to 4.6719/6883 from 4.6586/6644 yesterday.
However, it traded higher vis-Ã -vis the Japanese yen to 2.9385/9490 from 2.9439/9478 previously.
ASEAN Currencies
The local note performed mostly higher against ASEAN currencies.
It was slightly higher against the Singapore dollar to 3.2976/3094 from Thursday’s close of 3.2985/3029 and firmed versus the Philippine peso to 7.62/7.66 from 7.64/7.66.
The local unit also improved vis-Ã -vis the Thai baht to 12.9423/9991 from 12.9462/9710 yesterday and was a little changed against the Indonesian rupiah to 278.2/279.4 from 278.9/279.4 previously.
Conclusion
The ringgit’s performance in early trade is a result of a combination of factors, including the decline in the US dollar and the potential for changes in monetary policy landscapes. As the day progresses, it will be interesting to see how the ringgit reacts to the NFP data and other market developments.
FAQs
* What is the current exchange rate of the ringgit against the US dollar?
The ringgit is trading at 4.4145/4300 against the greenback.
* What are the factors affecting the ringgit’s performance?
The decline in the US dollar, potential changes in monetary policy landscapes, and seasonal trading patterns are all contributing to the ringgit’s performance.
* How did the ringgit perform against other major currencies?
The ringgit traded mostly lower against a basket of major currencies, but higher against some ASEAN currencies.