KUALA LUMPUR (Sept 4): The ringgit may hog the spotlight ahead Bank Negara Malaysia's announcement today on its international reserves. The global reserves will offer clues on how much ammunition the central bank has to support the ringgit against external and domestic factors.

These external factors include the impact of China's yuan devaluation, timing of US interest rate hikes and crude oil prices. Malaysia's external trade updates at noon today will provide a glimpse on the economy amid lower crude oil prices.
 
Yesterday, the ringgit weakened to 4.2485 against the US dollar. Compared to the Singapore dollar, the ringgit depreciated to 2.9999.

At 8am today, the ringgit strengthened versus the US dollar at 4.2275. Against the Singapore currency, the ringgit appreciated to 2.9852.

The ringgit dynamics may have an impact on Malaysian share market sentiment as investors eye overnight US equity gains.

Yesterday, Malaysia's FBM KLCI rose 12.56 points or 0.8% to close at 1,602.75 as investors
bargain hunted for beaten-down stocks. The gain followed the KLCI's 19.02-point or 1.18% fall a day earlier (Wednesday).

Overnight, the US' Dow Jones Industrial Average climbed 0.14% to 16,374.76 while S&P 500 rose 0.12% to 1,951.13. The Nasdaq Composite, however, fell 0.35% to 4,733.50.

Reuters reported that US stocks ended slightly higher on Thursday as investors, on edge after recent turmoil in China's markets, looked toward a key US jobs report that may figure in the Federal Reserve's decision about when to lift interest rates.

Today, Hong Kong's Hang Seng resumes trading while the Shanghai Composite extends its break. China markets were closed for holiday yesterday.