RINGGIT ENDS LOWER AGAINST US DOLLAR

By Zarul Effendi Razali

KUALA LUMPUR, Jan 8 (Bernama) -- The ringgit retreated from yesterday’s gains to close lower against the US dollar on Wednesday, as positive data from the United States prompted investors to return to the greenback.

At 6 pm, the ringgit slid to 4.5000/5050 against the greenback from Monday’s close of 4.4850/4900.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama that the ringgit was mostly flat against the greenback with USD/MYR ranges between RM4.4885 and RM4.5005.

“Positive data points in the US last night, such as Job Openings and ISM Index for the non-manufacturing sector, have bolstered the case for a gradual monetary easing by the US Federal Reserve (Fed).

“As such, markets will observe incoming information such as the Federal Open Market Committee minutes and the labour market data in December. The Nonfarm Payroll statistics will be released on Friday with consensus pencilling in for 154,000 jobs creation in December, lower than 227,000 in November,” he said.

Mohd Afzanizam added that the ADP Employment Change, which measures job creation in the private sector, will be published tonight with consensus projecting 139,000 jobs in December versus 146,000 in November.

Meanwhile, the ringgit closed higher against other major currencies. 

It strengthened versus the Japanese yen to 2.8449/8482 from Tuesday’s close of 2.8458/8492, advanced against the British pound to 5.6020/6083 from 5.6341/6403 and rose vis-a-vis the euro to 4.6431/6483 from 4.6756/6808.

The local note also traded higher against ASEAN currencies.

It climbed against the Thai baht to 12.9949/13.0168 from 13.0045/0258 at the previous close and was higher vis-a-vis the Indonesian rupiah at 277.5/278.0 compared with 277.7/278.2.

The ringgit appreciated marginally versus the Singapore dollar to 3.2919/2958 from 3.2983/3022 and also against the Philippine peso to 7.70/7.72 from 7.71/7.72 on Tuesday.

-- BERNAMA