KUALA LUMPUR, April 8 – The ringgit extended its downtrend against the US dollar to open lower today as the greenback strengthened amid positive US economic data, an analyst said.
At 9am, the local rating weakened to 4.2185/2220 against the greenback from 4.2180/2210 at yesterday’s close.
According to reports, initial weekly jobless claims in the United States fell to 166,000 last week from 171,000 in the previous period.
Bank Islam Malaysia Bhd’s chief economist, Mohd Afzanizam Abdul Rashid, said the data suggests the US labor market is improving following lower claims for state unemployment benefits among Americans.
“The U.S. dollar continues to climb as Federal Reserve (Fed) officials have remained consistent in their monetary tightening stance.
“This drove US Treasury yields higher, with the 10-year note gaining five basis points to 2.66%, leading to a steeper yield curve as long-term rates rose more than short-term securities. term,” he told Bernama. .
Mohd Afzanizam added that benchmark stocks were also higher, signaling better risk appetite among investors.
It has been reported that St. Louis Fed Chairman James Bullard prefers the federal funds rate to be between 3.0% and 3.25% by the second half of 2022, while St. Louis Fed Chairman the Chicago Fed, Charles Evan, is in favor of raising the interest rate to the neutral level.
Thus, the US Dollar Index (DXY) rose 0.15% to 99.751 points, a sign that market participants are still long on safe-haven currencies.
Therefore, Mohd Afzanizam said the ringgit is likely to stay within the range of RM4.21 to RM4.22 today.
At the open, the ringgit was trading mostly higher against a basket of major currencies.
It rose against the Singapore dollar to 3.0964/0992 from 3.0996/1021 at yesterday’s close and strengthened against the euro to 4.5813/5851 from 4.5942/5975.
The local unit improved against the British pound to 5.5127/5173 from 5.5188/5228 on Thursday and appreciated against the Japanese yen to 3.4070/4101 from 3.4093/4120. — Bernama