Ringgit starts trading firmer versus US dollar
An economist expects the currency to trade between RM4.05 and RM4.06, with upcoming US inflation data in focus.
The ringgit recorded a small opening gain on Nov 10, quoted at 4.0550/0610 per US dollar at 8 am compared with 4.0565/0610 at Friday’s close. Investors were cautious while weighing global economic developments and the direction of US interest rates.
Monday’s Deepavali replacement holiday had kept the market shut. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid forecast a firmer ringgit, putting its expected trading range at RM4.05 to RM4.06.
He said softer figures in the forthcoming US inflation data could lower Treasury yields and weaken the dollar, helping the ringgit. He also expected domestic economic indicators and Bank Negara Malaysia’s move to keep the Overnight Policy Rate at 2.75 per cent to support currency stability.
The ringgit nevertheless lost ground to other major currencies. Its yen quotation moved to 2.5666/5704 from 2.5616/5646, while the euro rate stood at 4.5505/5573 versus 4.5315/5365. Against the British pound, it reached 5.4499/4580 compared with 5.4304/4365.
Regional trading was mixed: the Singapore dollar quotation weakened to 3.1704/1756 from 3.1657/1694, and the Thai baht rate slipped to 12.1367/1641 from 12.0898/1105. The rupiah rate held at 224.2/224.6, but the ringgit gained against the Philippine peso, reaching 6.40/6.42 versus 6.43/6.44.
