KUALA LUMPUR, Sept 4 — The ringgit retreated against the US dollar at the opening today as the greenback strengthened on a better jobless claims report, dealers said.
At 9am, the local currency was quoted at 4.1430/1480 against the greenback from yesterday’s close of 4.1420/1450.
Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US jobless claims were better than expected as they fell to 881,000 compared with the 950,000 as estimated by the consensus.
“We expect some correction in the ringgit today given the rise in US dollar with the US dollar index (DXY) up by 0.05 per cent to 92.79.
“The market would also see some profit-taking activities set in as the ringgit has gained quite considerably,” he told Bernama.
Meanwhile, AxiCorp chief global market strategist Stephen Innes said there is a tinge of risk-off in the air triggered by the US tech sector sell-off.
He said the dollar is trading in less risk-on risk-off mode these days, and it is more about idiosyncratic divergences in currency markets.
“In that regard, the ringgit passes the eye candy test as yields look attractive, and coronavirus resurgence remains low, which should encourage more service sector reopening.
“For today, I expect a range trade mentality to dominate ahead of the US Non-Farm Payroll report later today,” he added.
The ringgit was also traded lower against other major currencies.
It went down against the Singapore dollar to 3.0363/0404 from yesterday’s 3.0351/0380 and was lower against the yen at 3.9037/9088 from 3.8929/8968 yesterday.
The ringgit depreciated against the British pound to 5.5027/5098 from 5.4981/5037 yesterday and fell against the euro to 4.9115/9187 from 4.8967/9015. — Bernama
