Kuala lumpur: The ringgit closed higher against the US dollar today, although gains were capped by a broadly firmer greenback as investors remained cautious ahead of the release of the closely watched United States (US) non-farm payrolls (NFP) report tomorrow, an analyst said. At 6 pm, the local currency traded higher at 4.0875/0920 against the greenback from Wednesday's close of 4.0920/0960.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the local currency traded within a narrow range of 4.0872 to 4.0933 throughout the day, reflecting cautious market sentiment. "The US dollar was well supported as the rate hike thesis remains intact for now, with the US Dollar Index (DXY) edging 0.09 per cent higher to 99.762 points," he mentioned. He further added that market participants are focusing on the US July employment report, which is anticipated to provide fresh insights on the Federal Reserve's monetary policy direction.

Based on consensus estimates, the US economy is expected to have added 88,000 jobs in July, up from 57,000 in June, while the unemployment rate is projected to remain unchanged at 4.2 per cent. At the close, the ringgit traded firmer against a basket of major currencies. It gained against the Japanese yen, strengthened compared with the euro, and advanced against the British pound. Against regional currencies, the ringgit also traded mostly higher, rising against the Singapore dollar, edging up against the Indonesian rupiah, and increasing against the Philippine peso. However, the local currency fell against the Thai baht.