Ringgit edges higher vs US dollar after BNM holds rate at 3 pct
Bernama
06/09/2024 11:30 MYT
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid opined that the ringgit would likely trade sideways as market participants remained cautious ahead of the NFP data release. - ADOBE STOCK
KUALA LUMPUR: The ringgit opened slightly higher against the US dollar on Friday after Bank Negara Malaysia (BNM) maintained the overnight policy rate (OPR) at 3.00 per cent, reflecting confidence in Malaysia's economic growth prospects, said an analyst.
At 8 am, the local currency climbed to 4.3325/3405 against the greenback from Thursday's close of 4.3360/3400.
BNM held the interest rate steady as the current monetary policy stance remains supportive of the economy and aligns with the central bank's assessment of inflation and growth outlook.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) continued to weaken, falling to 101.070 points as anticipation of significant US rate cuts grew.
"The ADP Nonfarm Employment Change came in significantly below expectations, recording 99,000 jobs in August against a consensus estimate of 144,000 and 111,000 the previous month.
"This strengthens the case for a larger rate cut at the upcoming Federal Open Market Committee (FOMC) meeting," he told Bernama.
He added that tonight's Nonfarm Payrolls (NFP) report will be closely monitored, with expectations of 164,000 jobs in August compared to 114,000 previously, and the unemployment rate predicted to fall to 4.2 per cent from 4.3 per cent. If realised, this would signal a positive labour market trend for August.
Mohd Afzanizam opined that the ringgit would likely trade sideways as market participants remained cautious ahead of the NFP data release.
The ringgit traded lower against a basket of major currencies this morning.
It weakened against the euro to 4.8138/8227 from 4.8099/8144 on Thursday, slipped against the British pound to 5.7081/7186 from 5.7049/7101, and fell versus the Japanese yen to 3.0213/3.0273 from 3.0189/0219.
The ringgit traded mixed against ASEAN currencies.
It strengthened against the Indonesian rupiah to 281.2/281.9 from 281.5/281.9 and firmed against the Philippine peso to 7.70/7.72 from 7.71/7.72.
However, it edged down against the Singapore dollar to 3.3332/3396 from 3.3303/3336 and fell against the Thai baht to 12.8878/9197 from 12.8772/8940.
-- BERNAMA
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