Ringgit opens firmer on weaker US consumer confidence data

KUALA LUMPUR: The ringgit was firmer against the US dollar in the early session, supported by weaker-than-expected US consumer confidence data that weighed on the greenback.

Meanwhile, investors remained cautious ahead of the release of the US nonfarm payrolls report later this week.

At 8.01am, the local currency rose to 4.0775/4.0870 against the greenback from Tuesday’s close of 4.0825/4.0870.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the US Conference Board Consumer Confidence Index came in at 91.2 points in June, well below the consensus estimates of 94.4 points.

“Today, expect the ringgit to remain cautious ahead of the nonfarm payrolls report tomorrow night, with consensus pegging at 114,000 in June versus 172,000 in May.

“It appears market sentiments are focusing on the US Federal Reserve’s decision (on a rate hike), and they seem to be ignoring the prevailing crude oil prices where West Texas Intermediate and Brent crude currently hover around US$69.50 per barrel and US$72.92 per barrel,” Afzanizam added.

At the opening, the ringgit traded mostly higher against a basket of major currencies.

It appreciated against the British pound to 5.4027/5.4153 from 5.4036/5.4096 at Tuesday’s close, eased versus the euro to 4.6537/4.6645 from 4.6528/4.6580 and appreciated vis-a-vis the Japanese yen at 2.5066/2.5126 from 2.5154/2.5183 yesterday.

The local note traded mixed against regional currencies.

It went up against the Singapore dollar to 3.1499/3.1577 from 3.1532/3.1570 at Tuesday’s close, was almost flat versus the Indonesian rupiah at 227.7/228.3 from 227.9/228.3 and was flat against the Philippine peso at 6.64/6.67 from 6.65/6.67.