The ringgit opened marginally lower against the US dollar on Friday as stronger-than-expected US economic data supported the greenback, although improving global risk sentiment helped limit losses, Bernama reported.
At 8am, the local currency slipped to 4.1170/1270 against the US dollar from Thursday’s closing level of 4.1160/1200.
The US economy expanded by 2.1% in the first quarter, beating market expectations of 1.6%, while the Personal Consumption Expenditures (PCE) inflation rate rose 4.1% in May, in line with forecasts.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) declined 0.18% to 101.431 points after the PCE data was released, reflecting two consecutive quarters of consumer spending growth below 1%.
“As such, the rally in the US dollar may not seem sustainable, especially in the context of lower crude oil prices following the 60-day timeline for peace deal negotiation between the US and Iran,” he said.
He added that the reopening of the Strait of Hormuz had improved investors’ risk appetite, helping to cushion the ringgit from steeper losses despite the stronger US data.
Against other major currencies, the ringgit traded lower across the board.
It weakened against the British pound to 5.4295/4427 from 5.4261/4314 at Thursday’s close, slipped against the euro to 4.6777/6891 from 4.6762/6807 and eased versus the Japanese yen to 2.5445/5508 from 2.5437/5464.
The local currency was largely unchanged against regional peers.
It traded flat against the Singapore dollar at 3.1742/1824, unchanged versus the Indonesian rupiah at 229.4/230.1 and remained steady against the Philippine peso at 6.71/6.73.
The ringgit, however, weakened against the Thai baht to 12.3245/3618 from 12.3370/3538 at the previous close.
