Ringgit is ending marginally higher against the US Dollar

KUALA LUMPUR: The ringgit ended marginally higher against the US dollar today on renewed buying interest and slightly easing demand for the greenback on weaker US Treasury yields, an analyst said.

As of 18:00, the local note rose slightly to 4.4760/4800 against the greenback compared to last Friday’s close of 4.4765/4780.

Stephen Innes, managing director of SPI Asset Management, said there were suspicions the worst was over for the ringgit.

“Alternative US data through February suggests the manufacturing and housing recovery may already have reversed.

“As such, US Treasury yields continue to deviate from last week’s boiling point as US economic data is expected to turn lower in February,” he told Bernama.

He said the ringgit was gaining support and while National People’s Congress (NPC) sessions weren’t firing on all political cylinders, Asia’s FX is doing better ahead of multiple data releases from China this week, which would likely put an end to growing skepticism over the strength of its recovery after reopening.

Meanwhile, said Dr. Mohd Afzanizam Abdul Rashid, head of economics, market analysis and social finance at Bank Muamalat Malaysia Bhd, said investors are cautious as concerns about a dovish Federal Reserve (Fed) will continue to dictate market direction.

“It appears that the hawkish tone will continue and this will support the US dollar,” he said.

He said US Payroll (NFP) data released on Friday and Bank Negara Malaysia’s (BNM) Monetary Policy Committee meeting on Thursday are among the key events this week.

He expects BNM to keep the overnight rate (OPR) unchanged.

Mohd Afzanizam said investors will also closely monitor the upcoming March 21-22 meeting of the US Federal Open Market Committee.

“By then, the Fed will release its quarterly guidance. So we will have a better idea of ​​where the Fed’s policy rate will end up,” he added.

The ringgit traded lower against a basket of major currencies. The local note slipped to 3.2895/2927 against the Japanese yen from 3.2877/2890 at Friday’s close, fell to 5.3842/3890 against the British pound from previously 5.3642/3660 and fell from 4 against the euro .7487 to 4.7575/7618/7503.

Meanwhile, the ringgit has also mostly traded lower against some ASEAN currencies.

It fell to 3.3259/3294 against the Singapore dollar from 3.3255/3269 late last week, fell to 12.9626/9810 against the Thai baht from 12.8998/9105 and fell against the Indonesian rupiah from 292, 30/292.60 to 292.50/293.0.

The local currency was unchanged against the Philippine peso at 8.16/8.17. –Bernama

https://www.thesundaily.my/home/ringgit-ends-marginally-higher-against-us-dollar-AH10714260 Ringgit is ending marginally higher against the US Dollar

Andrew Schnitker

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