Ringgit slightly higher at the close

KUALA LUMPUR: The ringgit continued to be well supported and was slightly higher at the close today although the US dollar remained fairly favourable against other major currencies, said an economist.

At 6 pm, the ringgit inched up to 4.7375/7400 versus the greenback from Monday’s close of 4.7380/7405.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) gained 0.17 per cent to 105.229 points.

“It seems that the US dollar remains fairly resilient despite higher hopes that the US Federal Reserve may cut its rates this year after the jobs report last Friday.

“Thus far, the equities market has shown stellar performance following such sentiments, as lower rates could boost stock valuation and hence increase its appeal to investors,” he told BK.

On the same note, he said the US Treasury yields have been on a declining trend with the 10-year note currently trading at 4.46 per cent, three basis points lower from the previous day.

Meanwhile, SPI Asset Management managing director Stephen Innes said the prospects for the ringgit appear favourable, particularly in light of the anticipated US rate cuts in September and Fed chair Jerome Powell’s stance on ruling out US rate hikes despite persistent inflationary pressures.

“With the upcoming US economic survey data pointing to further weaknesses in job growth, it’s possible that the dollar could lose ground against the ringgit, potentially slicing down though the 4.70 mark,” he said.

At the close, the ringgit traded higher against a basket of major currencies.

It rose versus the Japanese yen to 3.0646/0664 from Monday’s close of 3.0806/0825, strengthened vis-a-vis the British pound to 5.9385/9416 from 5.9604/9635 earlier and went up against the euro to 5.0971/0998 from 5.1033/1060 previously.

The local note traded higher against ASEAN currencies.

Against the Thai baht, the ringgit appreciated to 12.8332/8459 from Monday’s 12.8950/9070, firmed versus the Singapore dollar to 3.4989/5010 from 3.5086/5107, edged up vis-a-vis the Indonesian rupiah to 295.2/295.5 from 295.6/295.9 and was higher against the Philippine peso to 8.27/8.28 from 8.28/8.29 previously. – BK