Ringgit Closes Higher Against US Dollar as Investors Await Key US Payrolls Data

KUALA LUMPUR, Aug 6 — The ringgit ended higher against the US dollar on Thursday, though further gains were constrained by a broader strengthening of the greenback as market participants remained cautious ahead of crucial United States (US) non-farm payrolls (NFP) data.

At 6:00 pm, the local currency traded higher at 4.0875/0920 against the greenback compared with Wednesday’s closing rate of 4.0920/0960.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the ringgit traded within a tight band of 4.0872 to 4.0933 throughout the trading session, reflecting cautious market sentiment ahead of major macroeconomic releases.

“The US dollar was well supported as the rate hike thesis remains intact for now, with the US Dollar Index (DXY) edging 0.09 per cent higher to 99.762 points,” he told Bernama.

He added that market participants are focusing on the US July employment report, which is expected to offer fresh insights into the Federal Reserve’s monetary policy trajectory. Consensus estimates project that the US economy added 88,000 jobs in July, up from 57,000 in June, while the unemployment rate is expected to remain unchanged at 4.2 percent.

At the close, the ringgit posted broad gains against a basket of major currencies. It strengthened against the Japanese yen to 2.5892/5922 from Wednesday’s close of 2.5940/5967, advanced against the euro to 4.7162/7213 from 4.7222/7268, and appreciated versus the British pound to 5.4997/5058 from 5.5107/5161.

Against regional currencies, the local unit traded mostly higher. It rose against the Singapore dollar to 3.1881/1919 from 3.1916/1950, edged up versus the Indonesian rupiah to 228.0/228.4 from 228.1/228.5, and gained against the Philippine peso to 6.72/6.73 from Wednesday’s 6.73/6.74. However, the local note slipped against the Thai baht to 12.3628/3801 from 12.3216/3381 previously.

–NMT