Ringgit strengthens against US dollar in early trade

KUALA LUMPUR,. The ringgit opened higher against the US dollar today ahead of the United States (US) employment report which is scheduled to be released today, a dealer said.

At 9am, the local note rose to 4.1490/1510 versus the greenback from yesterday’s close of 4.1570/1600.

ActivTrades trader Dyogenes Rodrigues Diniz said the US non-farm payroll data is the most important indicator of the economic situation in the US, adding that the market expects some 750,000 new jobs to have been created over the last month.

“This data is significant because it gives clues about what future adjustments the US Federal Reserve might make to its monetary policy,” he said.

Diniz noted that another key number is the US unemployment rate, which is expected to drop from 5.4 per cent to 5.2 per cent.

“If the unemployment rate comes in below expectations, this could cause the US central bank to withdraw its financial stimulus sooner than expected, which could, in turn, push the dollar higher,” he added.

At the opening bell, the local note was traded mixed against a basket of major currencies.

It rose against the Singapore dollar to 3.0919/0936 from 3.0930/0955 at yesterday’s close and appreciated against the Japanese yen to 3.7756/7778 from 3.7801/7832 previously.

However, the ringgit fell against the British pound to 5.7439/7466 from 5.7333/7375 and weakened vis-a-vis the euro to 4.9298/9322 from yesterday’s close of 4.9265/9300. ― Bernama


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