RINGGIT RISES ON US DOLLAR CONSOLIDATION, OIL SPIKE

By Zufazlin Baharuddin

KUALA LUMPUR, Feb 5 (Bernama) -- The ringgit rose against the US dollar and major currencies on Thursday, supported by domestic strength and a rebound in oil prices, as the greenback consolidated after mixed US economic data.

At 8 am, the ringgit climbed to 3.9270/9370 versus the US dollar, from Wednesday’s close of 3.9305/9345.

IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said data from US automatic data processing (ADP) showed private payrolls rose by 22,000 in January, below consensus estimates of 46,000 and down from 37,000 in December, pointing to softer hiring momentum in the US labour market.

Wage growth for job stayers, however, remained elevated at 4.5 per cent year-on-year, signalling persistent labour cost pressures.

At the same time, S&P Global’s services and composite purchasing managers’ indices stayed above the 50-point threshold, indicating continued expansion, while the Institute for Supply Management’s services index was unchanged at 53.8 in January.

“While recent indicators continue to signal economic expansion, softer labour market dynamics have capped near-term US dollar momentum,” he told Bernama.

Separately, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said market sentiment was expected to remain cautious amid geopolitical developments, with investors closely watching planned talks between the US and Iran.

“Brent crude oil has risen by more than three per cent to US$69.46 per barrel as tensions between the US and Iran escalated recently,” he said.

Media reports said the US and Iran are scheduled to hold talks in Oman on Friday, following the downing of an Iranian drone earlier this week.

The ringgit also traded higher against a basket of major currencies. It strengthened versus the British pound to 5.3584/3720 from 5.3887/3942, rose against the euro to 4.6346/6464 from 4.6443/6490, and gained against the Japanese yen to 2.5025/5091 from 2.5091/5118.

Against regional peers, the local note was mostly firmer. It advanced versus the Singapore dollar to 3.0846/0929 from 3.0912/0946, strengthened against the Thai baht to 12.3716/4125 from 12.4206/4391, and edged up against the Indonesian rupiah to 234.0/234.7 from 234.2/234.6.

The ringgit was unchanged against the Philippine peso at 6.66/6.68.

-- BERNAMA