Ringgit Ends Lower Against US Dollar Amid Stronger US Economic Data Outlook
By Danni Haizal Danial Donald
KUALA LUMPUR, Nov 2 (Bernama) -- The ringgit ended lower against the US dollar on Monday with positive United States economic data outlook lending support to the greenback.
At 6 pm, the local note eased to 4.0695/0735 against the greenback from last Friday’s close of 4.0555/0600.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the October US Nonfarm Payrolls (NFP), scheduled to be released on Nov 6, is expected to reach 65,000 against 29,000 in the preceding month while the unemployment rate is expected to be sustained at 4.2 per cent.
“Positive (economic) data point could mean the Fed could resume its rate tightening cycle in December meeting with odds for the Fed Fund Rate hike at 71.1 per cent compared to 78.9 per cent a month ago.
“Still, higher odds could mean higher chance of rate tightening, which can be positive for the US dollar,” he told Bernama.
Mohd Afzanizam also said other regional currencies were mostly in the red against the US dollar as traders and investors were anxious about the prospect of renewed attack on Iran after the mid-term US elections tomorrow.
“The US dollar-ringgit trading had progressively moved up from RM4.057 in the early morning trade to RM4.072 during the afternoon session, while Thai baht, Indonesian rupiah and Japanese yen declined 0.24 per cent, 0.13 per cent and 0.06 per cent respectively,” he said.
Against major currencies, the ringgit traded mostly lower .
The ringgit slid against the British pound to 5.4621/4675 from 5.4461/4522 last Friday’s close, softened against the euro to 4.5652/5697 from 4.5413/5464, but it inched up vis-a-vis the yen to 2.5766/5793 from 2.5782/5812 previously.
The ringgit was lower against its ASEAN peers.
It fell vis-a-vis the Singapore dollar to 3.1825/1862 from previous close of 3.1753/1791, slipped versus the baht to 12.0496/0661 from 12.0373/0561, edged down against the rupiah to 224.1/224.4 from 223.4/223.8, and was slightly lower vis-a-vis the Philippine peso at 6.39/6.41 from 6.36/6.37 previously.
-- BERNAMA