Ringgit rises against US Dollar in early trading session
KUALA LUMPUR: The ringgit continued to strengthen against the US dollar in early trading on Friday, despite the advance of the major currency following the announcement of lower-than-expected unemployment claims data, according to analysts.
According to Bernama, at 8 AM, the ringgit climbed to 4.4695/4800 against the US dollar from 4.4710/4750 at the end of trading yesterday.
US Initial Unemployment Claims fell to 233,000—lower than the anticipated 241,000, compared to 250,000 the previous week.
Dr. Mohd Afzanizam Abdul Rashid, Chief Economist at Bank Muamalat Malaysia Bhd, told Bernama that the robust economic data alleviated concerns about a recession in the US, leading to increased equity prices and Treasury yields.
Meanwhile, the US Dollar Index (DXY) rose slightly to 103.22 points.
“Despite this, the four-week moving average for Initial Unemployment Claims and Total Unemployment Claims remains high, indicating that underlying weaknesses in the US labor market persist.
“As such, the US Federal Reserve (Fed) is on track to make appropriate rate decisions (interest rate cuts) at the upcoming Federal Open Market Committee (FOMC) meeting in September,” he said.
He also noted that this action is expected to support the ringgit in maintaining its current level of RM4.47 to RM4.48.
He indicated that the current resistance level is expected at 4.5152, while support is at 4.4467.
Meanwhile, the ringgit was also traded mostly higher against major currencies.
It strengthened against the euro to 4.8780/8895 from 4.8859/8903 and rose against the Japanese yen to 3.0261/0338 from 3.0590/0619 yesterday.
However, the ringgit weakened against the British pound to 5.6964/7098 from 5.6661/6712 in the previous session.
The ringgit was mixed against ASEAN currencies, strengthening against the Singapore dollar to 3.3699/3781 from 3.3746/3779 and rising against the Indonesian rupiah to 281.1/282.0 from 281.2/281.6.
Against the Thai baht, the ringgit fell to 12.6611/6988 from 12.6382/6545, and remained unchanged against the Philippine peso at 7.79/7.82.