Ringgit opens lower on stronger US dollar support

KUALA LUMPUR: The ringgit opened lower against the US dollar on firmer buying support for the greenback, supported by better US employment data.

At 9am, the local currency was trading at 4.1970 / 2005 against the greenback of 4.1930 / 1955 at Wednesday’s close.

According to US ADP Non-Farm Employment Change data, 807,000 jobs have been created in the US private sector against a forecast of 400,000.

ActivTrades trader Dyogenes Rodrigues Diniz said this could further accelerate the economic recovery in the United States and accelerate the pace of the withdrawal of the current financial stimulus.

He said this shows that the monetary policies adopted by the US Federal Reserve have had a positive effect.

“From a macroeconomic perspective, data on the non-farm payroll in the United States, which will be released on Friday, could confirm the high level of new jobs created and could give the US dollar even more strength against its counterparts.

“From a technical standpoint, if the ringgit-US dollar manages to break through the 4.1950 mark, the local unit could drop to 4.2450 in a matter of days,” he told Bernama.

Meanwhile, the ringgit traded for a basket of other major currencies.

It edged up against the Singapore dollar at 3.0919 / 0950 from Wednesday’s close of 3.0924 / 0939 and edged up against the Japanese yen at 3.6146 / 6180 from 3.6190 / 6215.

The local currency eased against the British Pound to 5.6857 / 6908 from 5.6785 / 6814 yesterday and weakened against the Euro to 4.7454 / 7511 from 4.7408 / 7424. -Bernama

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