KUALA LUMPUR, Nov 6 — The ringgit opened slightly lower against the US dollar today as mixed signals from the United States economy and financial markets clouded the greenback's outlook.
At 8 am, the local note eased to 4.0450/0520 against the greenback from yesterday's close of 4.0445/0490.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) edged up 0.03 per cent to 101.60, supported by signs of resilience in the US labour market.
He said labour market indicators, such as initial jobless claims, showed that claims had fallen further to 189,000 last week, suggesting the US labour market remained healthy.
"Still, the two- and 10-year US Treasury yields dropped 12 and five basis points to 4.46 per cent and 4.83 per cent, respectively.
"This suggests that the markets remain unconvinced about the rate-tightening cycle and perhaps also indicates that the scope for further rate hikes has gradually diminished," he told Bernama.
Afzanizam added that the planned expansion of artificial intelligence (AI) data centres would face further scrutiny from the US Congress in 2027, potentially affecting optimism over valuations in the sector.
This development could further dampen sentiment towards the sector's valuations. At the same time, the sharp decline in technology-related stocks suggested investors had become increasingly wary of the premium attached to the sector.
"On that note, the ringgit is likely to stay within a narrow band of RM4.04 to RM4.05 today," he said.
The ringgit traded mostly higher against a basket of major currencies.
It appreciated against the euro to 4.5413/5492 from 4.5428/5478 at yesterday's close and edged up against the British pound to 5.4421/4516 from 5.4455/4516, but weakened against the Japanese yen to 2.5683/5729 from 2.5548/5578 previously.
Meanwhile, the ringgit traded mixed against its ASEAN peers.
It strengthened against the Singapore dollar to 3.1646/1706 from the previous close of 3.1679/1717 and rose against the Thai baht to 12.0836/1122 from 12.1013/1199 yesterday.
The local currency inched down against the Indonesian rupiah to 223.7/224.1 from yesterday's close of 223.6/224.0, while remaining unchanged against the Philippine peso at 6.42/6.43.
