Ringgit Opens Lower As Easing Risks Lift US Dollar
By Zufazlin Baharuddin
KUALA LUMPUR, Feb 6 (Bernama) -- The ringgit opened lower against the US dollar on Friday, pressured by external spillovers as receding near-term geopolitical tensions lent support to the greenback.
At 8 am, the local currency eased to 3.9510/9610 versus the US dollar, from Thursday’s close of 3.9440/9535.
Media reports said the United States and Iran are scheduled to hold talks in Oman on Friday, following the downing of an Iranian drone earlier this week.
IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said softer US labour-market data — including a decline in job openings, rising layoffs and higher jobless claims — had reinforced demand for US Treasuries, pushing yields lower overnight.
“However, the absence of a clear signal of imminent Federal Reserve (Fed) easing has kept the US dollar supported, as markets price in a growth slowdown without a rapid policy pivot.
“This dynamic has sustained defensive dollar positioning, limiting near-term upside for the ringgit despite stable domestic macroeconomic conditions,” he told Bernama.
Separately, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said Atlanta Federal Reserve Bank president Raphael Bostic had maintained a hawkish stance on inflation, citing the need to keep policy restrictive.
“Hawkish views among Fed officials have supported the US dollar,” he said.
The ringgit traded mostly lower against a basket of major currencies.
It strengthened against the British pound to 5.3418/3553 from 5.3496/3625, but weakened versus the Japanese yen to 2.5199/5265 from 2.5068/5130 and slipped against the euro to 4.6527/6645 from 4.6460/6572 at Thursday’s close.
The local currency also traded lower against most ASEAN peers.
It fell against the Thai baht to 12.4074/4458 from 12.3955/4320 and edged down versus the Indonesian rupiah to 234.5/235.3 from 234.1/234.8.
The ringgit declined against the Singapore dollar to 3.0969/1052 from 3.0943/1020 and eased versus the Philippine peso to 6.73/6.75 from 6.72/6.74 previously.
-- BERNAMA