KUALA LUMPUR, Oct 1 — The ringgit closed higher against the greenback on Wednesday, extending gains for the third consecutive session as the United States (US) dollar weakened after the US federal government shut down beginning today.
The shutdown will result in a delay in the release of economic data, including the US nonfarm payrolls (NFP) report, which is due this Friday.
At 6pm, the local note climbed to 4.2045/2095 against the greenback compared with Tuesday’s close of 4.2050/2090.
Bank Muamalat Malaysia Bhd's chief economist Mohd Afzanizam Abdul Rashid said the NFP report, scheduled for release on Friday, could be delayed and would have an impact on traders, as they may not have the latest data points to form their opinions.
“The US government shutdown (has caused) uncertainties to heighten, and that is negative for the US dollar,” he told Bernama.
SPI Asset Management managing director Stephen Innes noted that the ringgit remained range-bound, as investors explored other haven assets like the Japanese yen, gold, and US Treasuries.
“The market uncertainty is amplified by the absence of US labour (data) releases during the shutdown. The lack of visibility on US jobs is keeping activity light, even as markets still lean on the prospect of US interest rate cuts later this year for medium-term support,” he said.
At the close, the ringgit was mostly lower against a basket of major currencies.
It appreciated to 4.9327/9386 versus the euro from 4.9405/9452 at Tuesday’s close, but slipped to 5.6605/6672 against the British pound from 5.6532/6586, and weakened to 2.8561/8597 against the Japanese yen from 2.8420/8447.
The local note was also traded lower against Asean currencies.
It dropped to 3.2623/2665 vis-à-vis the Singapore dollar from 3.2604/2638 at Tuesday’s close, depreciated to 12.9929/13.0128 against the Thai baht from 12.9744/9927, and inched down against the Indonesian rupiah to 252.7/253.1 from 252.3/252.6 previously.
The ringgit eased versus the Philippine peso to 7.23/7.24 from 7.22/7.24.
