The ringgit closed higher yesterday against the dollar after the Federal Reserve (Fed) showed their lack of interest in lowering interest rates in the near future.
Bank Muamalat Malaysia Bhd Chief Economist, Dr Afzanizam Rashid said the US economic data changed direction from market expectations which could lead to continued support for the US dollar currency.
He added that jobless claims were lower than expected at 201,000 last week compared to the consensus estimate of 217,000 and manufacturer sentiment improved to 51.5 points for February.
The ringgit is likely to remain warm against the US dollar in the range of RM4.77 to RM4.78 throughout the day. The report for Malaysian CPI will be released today with the consensus to remain stable at 1.6% in January.
Managing Director of SPI Asset Management, Stephen Innes said that the ringgit opened below its weakest level this week. The US dollar was stronger overnight after better-than-expected US data.
At 9am, the ringgit eased to 4.7745/4.7800 against the US dollar compared to 4.7710/4.7800 at Thursday's close.
Meanwhile, the ringgit traded higher against a group of major currencies.
The local currency was higher against the Japanese yen at 3.1735/3.1776 from 3.1764/3.1826 at Thursday's close, rose against the British pound to 6.0431/6.0500 from 6.0468/6.0582 and rose against the euro to 5.5167/5.167. 5.1873.
At the same time, the ringgit traded mixed compared to other Asean currencies.
It rose against the Thai baht to 13.2780/13.2999 from 13.3105/13.3404 at Thursday's close and rose against the Singapore dollar to 3.5554/3.5600 from 3.5578/3.5648 yesterday.
However, the local currency eased against the Indonesian rupiah to 306.2/306.7 from 305.9/306.7 on Thursday and was easier against the Philippine peso at 8.57/8.58 from 8.56/8.58 yesterday.
