KUALA LUMPUR — The ringgit opened higher against the US dollar at today’s opening as the US Dollar Index (DXY) fell further with the US labour market indicating a weaker outlook, an analyst said.
At 8 am today, the ringgit strengthened to 4.4285/4480 against the greenback compared to Tuesday’s close of 4.4400/4495.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the DXY fell further to 107.993 points.
“The Job Openings and Labour Turnover Survey (JOLTS) showed December’s total job openings fell to 7.6 million, lower than the 8.01 million consensus estimates.
“It was the first decline after reporting two consecutive months of increases with the ratio of total jobs available for every one unemployed individual dropping to 1.11 from 1.15 previously,” he said.
Mohd Afzanizam noted that the weaker labour market performance displayed would make it more compelling for a lower US Federal Reserve (Fed) Fund Rate.
“As such, the ringgit could continue to perform favourably today ranging between RM4.42 to RM4.44 with support and resistance levels at RM4.33 and RM4.45, respectively,” he noted.
Meanwhile, the ringgit traded lower against major currencies.
The local note weakened against the Japanese yen to 2.8729/8857 from Tuesday’s 2.8581/8645, slid vis-a-vis the euro to 4.5941/6144 from 4.5905/6003 and depreciated against the British pound to 5.5259/5502 from 5.5167/5285 previously.
The ringgit also traded mixed against ASEAN currencies.
It appreciated against the Philippine peso to 7.59/7.63 from 7.61/7.63 on Tuesday and inched up versus the Indonesian rupiah at 270.8/272.1 compared to 271.5/272.2 previously.
However, the ringgit was almost flat versus the Singapore dollar at 3.2741/2887 versus 3.2741/2813 and fell vis-a-vis the Thai baht at 13.1429/2121 from Tuesday’s 13.1241/1580. – February 5, 2025