Malaysia’s ringgit opened firmer against the US dollar on Wednesday after weaker-than-expected US consumer confidence data weighed on the greenback, while investors remained cautious ahead of this week’s closely watched US labour market data, Bernama reported.
At 8.01am, the local currency strengthened to 4.0775/0870 against the US dollar from Tuesday’s close of 4.0825/0870.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the US Conference Board Consumer Confidence Index fell to 91.2 points in June, missing market expectations of 94.4 points.
“Today, expect the ringgit to remain cautious ahead of the nonfarm payrolls report tomorrow night, with consensus pegging at 114,000 in June versus 172,000 in May.
“It appears market sentiments are focusing on the US Federal Reserve’s decision (on a rate hike), and they seem to be ignoring the prevailing crude oil prices where West Texas Intermediate and Brent crude currently hover around US$69.50 per barrel and US$72.92 per barrel,” Mohd Afzanizam told Bernama.
The market is now turning its attention to the US nonfarm payrolls report due later this week, which could provide further clues on the Federal Reserve’s interest rate path.
Against a basket of major currencies, the ringgit traded mostly stronger. It appreciated against the British pound to 5.4027/4153 from 5.4036/4096 and strengthened against the Japanese yen to 2.5066/5126 from 2.5154/5183 previously. However, it slipped slightly against the euro to 4.6537/6645 from 4.6528/6580.
The local currency also traded mixed against regional peers. It rose against the Singapore dollar to 3.1499/1577 from 3.1532/1570, was almost unchanged against the Indonesian rupiah at 227.7/228.3 from 227.9/228.3 and was flat against the Philippine peso at 6.64/6.67.
