Ringgit Firms To 3.9485 As Weak US Data Pressures Greenback

KUALA LUMPUR, Jan 28 (Bernama) -- 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 8 am opening, the ringgit traded at 3.9485/9500 versus the US dollar, a level last seen in May 2018, 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 (DXY) slid 1.32 per cent to 95.759 points, as 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, suggesting that consumer spending — a key pillar of the US economy — is likely to continue moderating.

“In addition, the Japanese yen has continued to strengthen amid lingering talk of possible coordinated intervention by the Japanese government and the US Federal Reserve,” 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 at Tuesday’s close, fell versus the euro to 4.7473/7491 from 4.6958/7023, and weakened against the Japanese yen to 2.5890/5902 from 2.5691/5730 previously.

The local currency was lower against the Singapore dollar at 3.1317/1332 from 3.1174/1219, slipped versus the Thai baht to 12.7639/7790 from 12.7247/7478, edged up against the Indonesian rupiah to 235.4/235.6 from 235.5/236.0, and was flat against the Philippine peso at 6.68/6.69 from 6.68/6.70.

-- BERNAMA