Ringgit Ends Higher On Regional Trade Optimism

By Abdul Hamid A Rahman

KUALA LUMPUR, July 3 (Bernama) -- The ringgit closed higher against the US dollar today, supported by improved regional sentiment following a new United States-Vietnam trade deal, said SPI Asset Management managing partner Stephen Innes.

At 6 pm, the local note rose to 4.2195/2255 versus the greenback from Wednesday’s close of 4.2245/2305.

Innes said the agreement to impose a reduced 20 per cent tariff on Vietnamese exports, down from a previously threatened 46 per cent has lifted risk appetite and supported regional currencies.

“The markets see this as a positive sign for global trade recovery, which helped boost the ringgit,” he told Bernama.

Innes also said that the weaker-than-expected US ADP jobs data, with only 33,000 jobs added in June, reinforced expectations of two US rate cuts this year, pressuring the greenback.

He noted, however, that market focus might shift on tonight’s non-farm payrolls report, with consensus at 106,000.

At the close, the ringgit traded mostly lower against a basket of major currencies.

It shrunk against the euro to 4.9756/9827 from 4.9748/9818, and depreciated against the Japanese yen to 2.9333/9376 from 2.9316/9360.

However, it appreciated versus the British pound to 5.7621/7703 from 5.7859/7941 yesterday.

The local note traded mixed against its ASEAN counterparts.

It improved vis-à-vis the Singapore dollar to 3.3146/3196 from 3.3167/3217, and rose against the Thai baht to 13.0211/0457 from 13.0233/0482.

It slipped against the Indonesian rupiah to 260.5/261.0 from 259.9/260.5, and weakened against the Philippine peso to 7.50/7.51 from 7.49/7.51 previously.

-- BERNAMA