KUALA LUMPUR, Nov 5 — The ringgit maintained its upward momentum, opening higher today as the US Dollar Index (DXY) weakened after Friday’s release of US non-farm payroll (NFP) data, said an analyst.
At 8am, the ringgit appreciated to 4.3700/3795 against the dollar, rising from yesterday’s close of 4.3715/3765.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid noted that the DXY dropped 0.38 per cent to 103.885 points.
He said US Treasury yields have trended lower, reflecting expectations of a potential rate cut in the Federal Funds Rate this week.
“However, market sentiment remains cautious as the tight race in the US presidential election continues to be the primary factor influencing confidence in the financial markets.
“The ringgit gained some strength yesterday, with the USD/MYR exchange rate moving to RM4.3740 from RM4.3807 on Friday. As a result, the ringgit is expected to trade within a range as markets await the outcome of the US election this week,” he said.
Meanwhile, the ringgit rose against a basket of major currencies.
It rose vis-a-vis the British pound to 5.6609/6732 from yesterday’s close of 5.6707/6772, appreciated versus the Japanese yen to 2.8697/8761 from 2.8775/8810, and was higher against the euro at 4.7519/7623 from 4.7636/7691.
The local note traded mostly higher against Asean currencies.
It was marginally higher against the Indonesian rupiah at 277.4/278.1 from 277.5/277.9, gained vis-a-vis the Singapore dollar to 3.3111/3186 from 3.3185/3226, and strengthened against the Thai baht to 12.9313/12.9728 from 12.9664/9882.
The ringgit was almost flat against the Philippine peso at 7.49/7.51 from 7.49/7.50.
— Bernama
