Ringgit slips against US dollar at opening
The currency strengthened against the euro and British pound, while an economist expected it to trade between RM4.04 and RM4.05 on Nov 6.
The ringgit started trading on Nov 6 at 4.0450/0520 per US dollar at 8 am, slightly weaker than Thursday’s closing level of 4.0445/0490, amid contrasting US employment and bond-market signals.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said resilient employment conditions supported the dollar. The US Dollar Index (DXY) rose 0.03 per cent to 101.60, while initial jobless claims declined to 189,000.
However, US Treasury yields fell, with the two-year yield dropping 12 basis points to 4.46 per cent and the 10-year yield declining five basis points to 4.83 per cent. Afzanizam said this indicated market doubts about further monetary tightening and potentially diminishing room for rate increases.
He expected the ringgit to remain between RM4.04 and RM4.05 on Nov 6.
Against other major currencies, the ringgit strengthened to 4.5413/5492 per euro, compared with 4.5428/5478 at Thursday’s close. It also improved to 5.4421/4516 per British pound from 5.4455/4516, but weakened to 2.5683/5729 against the Japanese yen from 2.5548/5578.
Regional trading was mixed. The ringgit rose to 3.1646/1706 per Singapore dollar from 3.1679/1717 and to 12.0836/1122 against the Thai baht from 12.1013/1199. It slipped to 223.7/224.1 against the rupiah from 223.6/224.0, while its Philippine peso rate held at 6.42/6.43.
