KUALA LUMPUR, March 6 — The ringgit closed marginally higher against the US dollar today on renewed buying interest amid slightly easing demand for the greenback due to softer US Treasury yields, said an analyst.
At 6pm, the local note rose slightly to 4.4760/4800 versus the greenback compared to last Friday’s closing rate of 4.4765/4780.
SPI Asset Management managing director Stephen Innes said there is some conjecture that the worst is over for the ringgit.
“Alternative US data through February suggest that the manufacturing and housing rebound may have already reversed.
“Hence, US Treasury yields continue to come off last week’s boil on expectations of February US economic data reverting lower,” he told Bernama.
He said the ringgit is getting support and although the National People’s Congress meetings (NPC) did not fire on all policy cylinders, Asia’s foreign exchange is doing better ahead of several data releases out of China this week that would likely put an end to growing scepticism over the strength of its post-reopening recovery.
Meanwhile, Bank Muamalat Malaysia Bhd head of economics, market analysis and social finance Dr Mohd Afzanizam Abdul Rashid said investors are cautious as concern over a hawkish US Federal Reserve (Fed) will continue to dictate market direction.
“It seems that the hawkish tone will continue and this will support the US dollar,” he said.
He said Friday’s US non-farm payroll (NFP) data and Bank Negara Malaysia’s (BNM) Thursday monetary policy committee meeting are among the key events this week.
He expects BNM to keep the overnight policy rate (OPR) unchanged.
Mohd Afzanizam said investors will also closely monitor the upcoming US Federal Open Market Committee meeting from March 21 to March 22.
“The Fed will share their quarterly forecast by then. So we will have more idea of where the Fed fund rate will end up,” he added.
The ringgit traded lower against a basket of major currencies. The local note slipped against the Japanese yen to 3.2895/2927 from 3.2877/2890 at Friday’s close, decreased versus the British pound to 5.3842/3890 from 5.3642/3660 previously, and fell vis-a-vis the euro to 4.7575/7618 from 4.7487/7503.
Meanwhile, the ringgit also traded mostly lower against some Asean currencies.
It eased against the Singapore dollar to 3.3259/3294 from 3.3255/3269 at the end of last week, edged down against the Thai baht to 12.9626/9810 from 12.8998/9105, decreased against the Indonesian rupiah to 292.50/293.0 from 292.30/292.60.
The local currency was flat vis-a-vis the Philippine peso at 8.16/8.17.
— Bernama
