Ringgit continues its upward momentum to open higher against US dollar

KUALA LUMPUR: The ringgit opened higher today against the US dollar amid the United States soft labour market data, said an analyst.

At 9 am, the ringgit strengthened to 4.6960/7020 versus the greenback from Tuesday's close of 4.7005/7030.

The latest report Jobs Opening and Labour Turnover Survey (JOLTS) showed that demand for labour is on the way down. Job openings for April fell to 8.059 million from 8.355 million in the prior month.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the latest labour market data will give the Federal Reserve (Fed) reason for a pause (in rate hike) and perhaps tilt its monetary stance towards policy accommodation in order to sustain economic growth.

"Essentially, there is growing evidence that the Fed needs to shift its focus towards its other mandate; that is, pursuing maximum employment.

"On that note, the US Dollar Index (DXY) had stayed below 105 points for four consecutive days," he told Bernama.

Hence, Mohd Afzanizam expects the ringgit to continue to be well supported and could price below the RM4.70 mark.

The ringgit traded easier against a basket of major currencies, but rose against the Japanese yen to 3.0248/0289 from 3.0293/0311 at Tuesday's close.

The local unit fell against the euro to 5.1111/1177 from 5.1099/1126 and slid vis-a-vis the British pound to 5.9991/6.0068 from 5.9988/6.0020 previously.

The ringgit was mostly higher against its ASEAN peers but depreciated vis-a-vis the Singapore dollar to 3.4878/4925 from 3.4868/4889 yesterday.

It increased against the Thai baht to 12.8124/8333 from 12.8443/8568 at Tuesday's close, rose vis-a-vis the Indonesian rupiah to 289.4/290.0 from 289.7/290.0 previously and it increased versus the Philippine peso to 7.98/8.00 from 8.00/8.01.

-- BERNAMA

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