By Anas Abu Hassan
KUALA LUMPUR, June 5 (Bernama) -- The ringgit closed higher against the US dollar on Thursday, supported by a weaker greenback following downbeat United States economic data, as investors shifted into risk-on mode.
At 6 pm, the local note stood at 4.2245/2295 against the greenback, strengthening from Wednesday’s close of 4.2435/2490.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said traders and investors were weighing the prospects of an economic slowdown and the risk of higher inflation stemming from recent tariff shocks.
"This has led to a policy dilemma among Federal Open Market Committee (FOMC) members, and hence the scope for interest rate cuts is rather limited," he told Bernama, adding that the next key data point would be the Non-farm Payroll (NFP) report due on Friday.
Consensus estimates expect May’s NFP to reach 130,000, down from 177,000 in April, while the unemployment rate is forecast to hold steady at 4.2 per cent.
At the close, the ringgit traded mostly higher against a basket of major currencies.
It slipped against the Japanese yen to 2.9495/9531 from Wednesday’s 2.9444/9486 but strengthened versus the euro to 4.8235/8292 from 4.8300/8362 and appreciated against the British pound to 5.7301/7369 from 5.7427/7502.
The local currency also traded higher against most of its ASEAN peers.
It appreciated versus the Singapore dollar to 3.2881/2922 from 3.2906/2951, advanced against the Indonesian rupiah to 259.3/259.8 from 260.4/260.8, and edged higher against the Philippine peso to 7.59/7.61 from 7.60/7.62.
However, it fell against the Thai baht to 12.9925/13.0138 from 12.9679/12.9911.
-- BERNAMA
