The ringgit opens firmer at 3.9485 against the US dollar, supported by weak US economic data and a falling US Dollar Index.
KUALA LUMPUR: The ringgit opened firmer against the US dollar on Wednesday, supported by weaker US economic data that continued to weigh on the greenback.
At the opening, the ringgit traded at 3.9485/9500 versus the US dollar, a level last seen in May 2018. This compared with Tuesday’s close of 3.9500/9555.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index slid 1.32% to 95.759 points. Recent data strengthened expectations of monetary easing later this year.
“The US Conference Board’s Consumer Confidence Index fell more than expected to 84.5 points in January, below the consensus estimate of 90.6 points,” he said.
He added that Americans have become increasingly worried about the rising cost of living and weaker job prospects. This suggests consumer spending is likely to continue moderating.
“In addition, the Japanese yen has continued to strengthen amid lingering talk of possible coordinated intervention,” he said.
Mohd Afzanizam said the ringgit could break below the 3.95 level against the US dollar amid continued dollar weakness.
The ringgit, however, opened mixed against major currencies and ASEAN peers.
It eased against the British pound to 5.4592/4613 from 5.4103/4178. It fell versus the euro to 4.7473/7491 from 4.6958/7023 and weakened against the Japanese yen to 2.5890/5902.
The local currency was lower against the Singapore dollar at 3.1317/1332. It slipped versus the Thai baht to 12.7639/7790 and edged up against the Indonesian rupiah to 235.4/235.6. It was flat against the Philippine peso at 6.68/6.69.
