KUALA LUMPUR, July 1 — The ringgit opened firmer against the US dollar today, supported by weaker-than-expected US consumer confidence data that weighed on the greenback.
However, investors remained cautious ahead of the release of the US nonfarm payrolls report later this week.
At 8.01 am, the local currency strengthened to 4.0775/0870 against the greenback from yesterday's close of 4.0825/0870.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the US Conference Board Consumer Confidence Index stood at 91.2 points in June, well below the consensus estimate of 94.4 points.
"Today, expect the ringgit to trade cautiously ahead of the nonfarm payrolls report tomorrow night, with the consensus forecast at 114,000 jobs in June compared with 172,000 in May.
"It appears market sentiment is focused on the US Federal Reserve's interest rate decision, while largely overlooking prevailing crude oil prices, with West Texas Intermediate and Brent crude currently hovering at around US$69.50 and US$72.92 per barrel respectively," Mohd Afzanizam told Bernama.
At the opening, the ringgit traded mostly higher against a basket of major currencies.
It appreciated against the British pound to 5.4027/4153 from 5.4036/4096 at yesterday's close, eased against the euro to 4.6537/6645 from 4.6528/6580, and strengthened against the Japanese yen to 2.5066/5126 from 2.5154/5183 yesterday.
The local note traded mixed against regional currencies.
It strengthened against the Singapore dollar to 3.1499/1577 from 3.1532/1570 at yesterday's close, was little changed against the Indonesian rupiah at 227.7/228.3 from 227.9/228.3, and was unchanged against the Philippine peso at 6.64/6.67 from 6.65/6.67.
