KUALA LUMPUR: The ringgit ended the week on a positive note after closing stronger against the US dollar today amid rising hopes of a United States (US) interest rate cut, an analyst said.
At 6 pm, the local note appreciated by 0.18 per cent to 4.3275/3330 versus the greenback from Thursday’s close of 4.3360/3400.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that traders took a breather from the safe-haven currency as calls for an aggressive rate cut in the US are gaining momentum, fueled by recent weakening employment data.
The ADP Nonfarm Employment Change came in significantly below expectations, recording 99,000 jobs in August, while the Jobs Opening and Labour Turnover Survey (JOLTS) showed that the number of job openings in the US declined more than expected to 7.67 million in July.
"At the same time, the prospects of a narrowing range between Fed Fund Rate and Overnight Policy Rate going forward has contributed to the positive performance for the ringgit,” Mohd Afzanizam told Bernama.
He said, nevertheless, traders will keep a close watch on the US nonfarm payroll data, which is due to be released later today for further guidance.
At the close, the ringgit traded mostly higher against a basket of major currencies.
It was slightly higher against the euro to 4.8087/8148 from 4.8099/8144 on Thursday, gained against the British pound to 5.7010/7083 from 5.7049/7101, but fell versus the Japanese yen to 3.0296/0337 from 3.0189/0219.
However, the ringgit traded mostly lower against ASEAN currencies.
It strengthened against the Indonesian rupiah to 281.3/281.9 from 281.5/281.9 yesterday but fell against the Philippine peso to 7.74/7.75 from 7.71/7.72.
It also edged down against the Singapore dollar to 3.3327/3372 from 3.3303/3336 and declined against the Thai baht to 12.9087/9305 from 12.8772/8940. - Bernama
