Ringgit opens marginally higher against greenback

Ringgit opens marginally higher against greenback
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KUALA LUMPUR (Nov 19): The ringgit opened marginally higher against the US dollar on Friday (Nov 19) despite an improvement in the US labour market data with the four-week moving average initial jobless claims declining to 272,750 last week from 278,000 the previous week, said an analyst.

At 9am, the local note opened slightly higher at 4.1790/1820 versus the greenback from 4.1800/1825 at Thursday’s close.

Additionally, Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said manufacturer sentiment based on the Philadelphia Federal Reserve Manufacturing Survey also increased significantly to 39.0 points in November from 23.8 points in the preceding month, much higher compared to the consensus estimate of 24.0 points.

“Perhaps there could be profit-taking activities on the US dollar and by extension, the ringgit could be supported,” he told Bernama.

Hence, he said the ringgit may not breach its resistant level of 4.1862 against the greenback in the near term considering the better risk appetite based on the rise in equity prices and a slight decline in the 10-year US Treasury yield to 1.59%.

“The ringgit would continue to exhibit a tight range trade of between 4.1750 and 4.1850 today (Friday) [against the US dollar],” he said.

Meanwhile, the local note was traded mixed against a basket of major currencies.

The ringgit climbed versus the British pound to 5.6383/6424 from 5.6401/6434 at Thursday’s close and increased vis-a-vis the Japanese yen to 3.6552/6582 from 3.6609/6631.

However, the local note dipped against the euro to 4.7494/7528 from 4.7364/7392 and weakened versus the Singapore dollar at 3.0796/0820 from 3.0781/0801 on Thursday.