Ringgit Higher Against US Dollar In Early Trade
By Siti Radziah Hamzah
KUALA LUMPUR, Dec 6 (Bernama) -- The ringgit advanced against the US dollar in early trade on Friday ahead of the US non-farm payrolls (NFP) data that will be released later today, said an analyst.
At 8.02 am, the ringgit advanced to 4.4145/4300 against the greenback compared with Thursday’s close of 4.4250/4305
SPI Asset Management managing partner Stephen Innes said the US dollar registered its third consecutive day of decline, a trend not seen since September, as traders pared back bullish dollar positions ahead of the NFP report.
“This pullback may signal the onset of a seasonal pattern where corporate and local exporters ramp up dollar selling.
“This dynamic could intensify, especially if the US Federal Reserve opts for a rate cut in December against a backdrop of a potential Bank of Japan rate hike and a possibly less dovish European Central Bank,” he told Bernama.
Overnight, the offshore Chinese yuan caught some lift from the broadly weakening dollar.
Innes said all these factors combined to suggest a favourable opening for the ringgit, hinting at a potentially buoyant session ahead as global and local currency markets recalibrate in response to shifting monetary policy landscapes and seasonal trading patterns.
The ringgit, however, traded mostly lower against a basket of major currencies.
It fell against the British pound to 5.6316/6514 from 5.6286/6356 on Thursday and declined versus the euro to 4.6719/6883 from 4.6586/6644 yesterday. It traded higher vis-a-vis the Japanese yen to 2.9385/9490 from 2.9439/9478 previously.
Meanwhile, The local note performed mostly higher against ASEAN currencies.
It was slightly higher against the Singapore dollar to 3.2976/3094 from Thursday’s close of 3.2985/3029 and firmed versus the Philippine peso to 7.62/7.66 from 7.64/7.66.
The local unit also improved vis-a-vis the Thai baht to 12.9423/9991 from 12.9462/9710 yesterday and was a little changed against the Indonesian rupiah to 278.2/279.4 from 278.9/279.4 previously.
-- BERNAMA