Kuala lumpur: Ringgit opened slightly higher against the US dollar on Wednesday, supported by weaker-than-expected US economic data that weighed on the greenback. At 8 am, the local currency edged up to 4.0940/0995 against the greenback from Tuesday's close of 4.0945/0985.
According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the US Job Openings and Labour Turnover Survey (JOLTS) revealed a second consecutive month of decline in job openings, which fell to 7.36 million in June from 7.54 million in May. This led to a slight dip in the US Dollar Index (DXY) by 0.01 percent to 99.890 points. The JOLTS report signals potential support for the ringgit, which is anticipated to trade within a range of RM4.08 to RM4.10.
Meanwhile, SPI Asset Management managing partner Stephen Innes highlighted the ringgit's potential to trade with a firmer bias, buoyed by sustained capital inflows into Asia's technology sector and resilient global risk sentiment. However, he cautioned that the gains might be limited as investors await the release of the US non-farm payrolls (NFP) report on Friday.
Innes further explained that broader currency markets remained largely range-bound despite an improved risk appetite and a notable decline in oil prices. The lower oil prices are reinforcing expectations of a dovish policy stance by the US Federal Reserve. He added that the decline in oil prices is influencing the policy outlook for other central banks, leading to a compressed impact across major currency pairs ahead of the NFP report.
Despite the slight rise against the greenback, the ringgit traded lower against a basket of major currencies at the opening. It fell against the Japanese yen to 2.5952/5989 from 2.5929/5956, weakened against the euro to 4.7212/7275 from 4.7120/7166, and slipped versus the British pound to 5.5060/5134 from 5.5034/5088.
Against regional currencies, the ringgit also experienced a downturn. It weakened against the Singapore dollar to 3.1932/1980 from 3.1899/1932 and depreciated versus the Thai baht to 12.3113/3330 from 12.2487/2654. The local note eased against the Indonesian rupiah to 227.1/227.5 from 227.1/227.4 but remained unchanged against the Philippine peso at 6.69/6.70.