The ringgit opened mostly higher against major currencies on Friday but remained almost unchanged against the US dollar as heightened global tensions weighed on the greenback ahead of the release of the US non-farm payrolls (NFP) report, Bernama reported.
At 8.05am, the ringgit eased marginally to 4.0895/0960 against the US dollar from Thursday’s close of 4.0875/0920.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the NFP data, due later today, could provide fresh direction for the US dollar, with the US labour market expected to remain resilient.
“The US Dollar Index (DXY) also rose by 0.25 per cent to 99.930 points. The initial jobless claims were slightly higher last week to 199,000 from 198,000 in the prior week and have remained below the 200,000 level for three consecutive weeks.
“Based on the consensus estimates, the NFP is expected to improve to 88,000 during July after declining to 57,000 in June,” he told Bernama.
Mohd Afzanizam expects the US dollar-ringgit pair to trade within the RM4.08 to RM4.10 range today.
Quintex Intel global strategist Stephen Innes said the ringgit could come under pressure as risk sentiment deteriorated following further details surrounding the Iran-Oman agreement over the Strait of Hormuz.
“The Islamic Revolutionary Guard Corps (IRGC) attacks on what it describes as hostile actors, broadly including those supporting the US or Israel, have renewed concerns over regional security and energy flows.
“Therefore, crude oil prices have surged overnight, while the US dollar has attracted a safe-haven bid ahead of the US NFP report,” he said.
Innes said a stronger ADP employment reading being reflected in the official labour data could reinforce the US dollar if employment remains resilient while oil prices stay elevated, leaving the ringgit on the defensive.
Against a basket of major currencies, the ringgit edged up against the Japanese yen to 2.5808/5850 from 2.5892/5922 and strengthened against the euro to 4.7123/7198 from 4.7162/7213.
However, it weakened against the British pound to 5.5020/5108 from 5.4997/5058.
Against regional currencies, the ringgit traded mixed.
It rose against the Singapore dollar to 3.1860/1913 from 3.1881/1919 and strengthened against the Thai baht to 12.3442/3701 from 12.3628/3801.
The ringgit was almost flat against the Philippine peso at 6.72/6.74 from 6.72/6.73, while it slipped against the Indonesian rupiah to 228.1/228.6 from 228.0/228.4.
