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Tuesday, 8 September 2020

Ringgit opens lower on back of strong US employment data

KUALA LUMPUR: The ringgit opened lower against the US dollar as the greenback strengthened, supported by jobs data, which showed a decline in the unemployment rate, and a rise in US Treasury yields, dealers said.

At 9.01 am, the local currency was quoted at 4.1600/1700 against the greenback from yesterday’s close of 4.1550/1600.

AxiCorp Chief Global Market Strategist Stephen Innes said the ringgit’s overachieving ways of late has yielded to general global risk sentiment, a firmer dollar, and tumbling oil prices struggling to pull off the mat in the face.

A dealer said the ringgit was the best performing Asian currency, benefiting from a combination of US dollar weakness and demand for the local unit.

“The eventual reversal of the pair is expected from recent moves. We see room for the ringgit to test 4.12-4.13 against the US dollar this week,” he told Bernama.

Bank Negara Malaysia’s Overnight Policy Rate announcement on Thursday will be key whereby a pause to rate cuts may further reinforce ringgit’s bullishness, he added.

Against other major currencies, the ringgit was also traded mixed.

It went down against the Singapore dollar to 3.0416/0491 from yesterday’s 3.0411/0452 and was weaker against the yen at 3.9149/9247 from 3.9113/9171.

The ringgit appreciated against the British pound to 5.4712/4848 from 5.4804/4887 yesterday and rose against the euro to 4.9105/9235 from 4.9145/9209.



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