KUALA LUMPUR, June 5 — The ringgit traded easier against the US dollar on Friday morning but strengthened against other major currencies amid cautious market sentiment, as authorities across Asia reaffirmed their commitment to stabilising their respective currencies.
The US dollar is expected to remain firm ahead of the release of the United States (US) Nonfarm Payrolls (NFP) data later tonight.
At 8 am, the local currency slipped to 4.0120/0160 against the greenback from yesterday’s close of 4.0095/0140.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said consensus estimates projected the US NFP figure at 85,000 in May, compared with 115,000 in April, while the unemployment rate is expected to remain steady at 4.3 per cent.
“This will be the determining factor, as elevated fuel prices could lead to higher inflation, while steady labour market conditions may prompt the US Federal Reserve to maintain its restrictive monetary policy stance,” he said.
Mohd Afzanizam added that the US dollar-Japanese yen pair had surpassed the psychological 160-yen level, prompting the Japanese government to state its readiness to intervene in the foreign exchange market.
“India is also considering scrapping capital gains tax on bonds to attract foreign investors. As such, the currency market is likely to remain guarded, and the ringgit is no exception.
“This is especially true as political developments, such as state elections, begin to take shape,” he added.
At home, the ringgit traded higher against a basket of major currencies.
It rose against the British pound to 5.3845/3899 from 5.3872/3932 at yesterday’s close, gained against the euro to 4.6587/6634 from 4.6610/6663, and appreciated versus the Japanese yen to 2.5075/5102 from 2.5081/5111 previously.
However, the local currency traded mostly lower against regional peers.
It strengthened against the Singapore dollar to 3.1224/1258 from 3.1241/1279 at yesterday’s close, but eased against the Thai baht to 12.2710/2881 from 12.2708/2903 and depreciated against the Philippine peso to 6.51/6.52 from 6.50/6.52 previously.
The ringgit was also slightly weaker against the Indonesian rupiah at 222.2/222.6 compared with 222.1/222.4 yesterday.
