Ringgit Starts Showing Fangs, Temporary Recovery?

thecekodok


The ringgit strengthened significantly against the US dollar in early trade on Friday ahead of US NFP data due out at 9.30pm tonight.


At 10.30am, the ringgit was at 4.4260, unchanged from its close at the end of Thursday’s trading.


SPI Asset Management managing partner Stephen Innes said the US dollar recorded a third consecutive day of decline as traders pared back their US dollar gains ahead of the NFP report.


The retracement may mark the start of a seasonal pattern where corporate and local exporters are increasing dollar sales.


He added that this dynamic could intensify especially if the US Fed opts for a rate cut in December against the backdrop of a potential rate hike by the Bank of Japan and a possible less dovish European Central Bank.


All these factors combine to suggest a favourable opening for the ringgit and hint at a potentially bullish session ahead.


Meanwhile, the ringgit was mostly trading lower against a basket of major currencies.


It fell against the British pound to 5.6316/6514 from 5.6286/6356 on Thursday and eased against the euro to 4.6719/6883 from 4.6586/6644 yesterday. The ringgit traded higher against the Japanese yen to 2.9385/9490 from 2.9439/9478 previously.


Meanwhile, the local note outperformed its Asean counterparts.


It was marginally higher against the Singapore dollar to 3.2976/3094 from Thursday's close of 3.2985/3029 and strengthened against the Philippine peso to 7.62/7.66 from 7.64/7.66.


The local unit also rose against the Thai baht to 12.9423/9991 from 12.9462/9710 yesterday and was little changed against the Indonesian rupiah to 278.2/279.4 from 278.9/279.4 previously.

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