Ringgit rises against US dollar in early session

02 Jun 2023 09:51am
File Pic.
File Pic.

KUALA LUMPUR - The ringgit traded higher against the US dollar in the early session today as investors await the release of the United States (US) nonfarm payrolls data later today, said a dealer.

At 9 am, the local note rose to 4.5990/6030 versus the greenback compared with Thursday’s closing of 4.6110/6165.

ActivTrades trader Dyogenes Rodrigues Diniz said investors were uncertain ahead of the release of the US nonfarm payrolls data.

"From a technical point of view, the Relative Strength Index (RSI) indicator shows that the US dollar/ringgit is in an overbought region and the ringgit could rise further if the price manages to break the 4.5860 level.

"If that is the case, the US dollar/ringgit could reach 4.5260, where it should find some solid support,” he said in a note today.

Meanwhile, Bank Muamalat Malaysia Bhd chief economist and social finance head Dr Mohd Afzanizam Abdul Rashid said the ringgit could stabilise and might record a slight appreciation given the positive development on the US debt ceiling along with soft economic data that might lead to a more dovish stand by the US Federal Reserve.

In the meantime, the ringgit was traded lower against a basket of major currencies.

It went down to 3.3101/3132 against the Japanese yen from 3.2995/3036 at Thursday’s closing, declined against the euro to 4.9494/9537 from 4.9356/9415 and depreciated versus the British pound 5.7602/7653 from 5.7407/7475 yesterday.

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The local note was traded mostly lower against other Asean currencies.

The ringgit fell against the Thai baht to 13.2823/3008 from 13.2569/2792 yesterday and slid against the Singapore dollar to 3.4117/4149 from Thursday’s 3.4095/4138.

It eased against the Indonesian rupiah at 306.6/307.1 from 307.4/308.0 on Thursday and was flat against the Philippine peso at 8.19/8.21. - BERNAMA