Ringgit advances against greenback as traders await fresh US economic data

KUALA LUMPUR, July 2 — The ringgit ended higher against the US dollar and regional currencies today as the greenback remained subdued following a lack of clear guidance on the United States interest rate outlook.

At 6 pm, the local note appreciated to 4.0780/0830 against the greenback from yesterday’s close of 4.0920/0965.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said market participants were focused on Federal Reserve (Fed) chairman Kevin Warsh’s statement made at the European Central Bank Forum in Sintra, Portugal, yesterday.

He told Bernama that the panel session showed that the Fed chairman was unwilling to provide forward guidance, particularly on the future direction of interest rates.

“This suggests that the Fed remains data-dependent, with markets now turning their attention to incoming US economic data, especially the Nonfarm Payrolls report due today.

“Consensus estimates suggest that the US economy added 114,000 jobs in June, while the unemployment rate is expected to remain steady at 4.3 per cent,” said Mohd Afzanizam.

At the close, the ringgit was mostly lower against a basket of major currencies.

It depreciated versus the British pound to 5.4401/4467 from 5.4203/4262 at the close on Wednesday, and slid against Japanese yen to 2.5295/5327 from 2.5144/5174 previously.

However, it was higher against the euro at 4.6526/6583 from 4.6600/6651 yesterday.

The local note was stronger against regional currencies.

It rose against the Singapore dollar to 3.1517/1558 from 3.1555/1589, enhanced against the Thai baht to 12.2411/2613 from 12.2526/2708 yesterday, was higher against the Philippine peso at 6.62./6.63 from 6.64/6.65, and gained against the Indonesian rupiah to 226.6/226.9 from 227.9/228.3 previously. — Bernama