KUALA LUMPUR – The ringgit opened flat against the US dollar today as looming risks surrounding next week’s US election kept investors cautious.
At 8am, the local currency remained unchanged at 4.3755/3805 against the greenback, holding steady from yesterday’s close.
SPI Asset Management managing director Stephen Innes commented on the ringgit’s recent struggles, noting that pre-election nerves had kept investors on edge.
“The upcoming US election remains a key risk factor, with the race too close to call, stirring potential volatility in forex markets,” he told Bernama.
Innes added that recent US economic data may add pressure to the ringgit today, especially as expectations for a Federal Reserve rate cut ease. This shift followed the release of robust US inflation data, which showed greater resilience than anticipated.
Reports show that the US inflation rate stood at 2.1% in September, its lowest since early 2021 and marginally above the Fed’s 2% target.
“Today’s wild card is the US Nonfarm Payroll (NFP) report.
“Given recent labour strikes and hurricane-related disruptions, the NFP could underperform, which may in turn soften the US dollar,” he added.
The ringgit was mostly lower against a basket of major currencies this morning.
It increased vis-a-vis the British pound to 5.6422/6487 from 5.6877/6942 at yesterday’s close, however it eased versus the Japanese yen to 2.8786/8821 versus 2.8591/8625, and slipped against the euro to 4.7619/7673 from 4.7430/7485 previously.
Meanwhile, the ringgit was also traded mostly lower versus Asean currencies.
The local currency depreciated against the Indonesian rupiah at 278.7/279.1 compared with Wednesday’s close of 278.5/279.0 and fell vis-a-vis the Singapore dollar to 3.3150/3193 from 3.3080/3120 and was inched down against the Philippine peso at 7.53/7.54 from 7.51/7.52 previously.
However the local note strengthened against the Thai baht to 12.9300/12.9539 from 12.9837/13.0047. – November 1, 2024