The Malaysian ringgit opened higher against the US dollar and major currencies, supported by a retreat in US Treasury yields and early Asian trading activity.
KUALA LUMPUR: The ringgit opened marginally firmer against the US dollar on Friday. The local currency strengthened to 3.8800/8930 against the greenback from Thursday’s close of 3.8865/8925.
IPPFA Sdn Bhd director of investment strategy Mohd Sedek Jantan said the softer US yield backdrop reduced immediate support for the dollar. This allowed selective Asian currencies, including the ringgit, to open on a firmer footing.
He noted the greenback found mild support from a marginally firmer US labour market print. Weekly US initial jobless claims came in lower than expected at 212,000.
READ MORE: Strengthening of ringgit boosting investor confidence
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US dollar index was slightly higher by 0.09% to 97.791 points. Brent crude stabilised around USD 70.75 per barrel as US-Iran talks appeared to be progressing.
“We sense the traders may have become cautious as the good news has already been priced in,” he said. He expects the greenback-ringgit pair to hover in a narrow range today.
At the open, the ringgit traded higher against a basket of major currencies. It strengthened against the Japanese yen to 2.4893/4978 from 2.4902/4942.
It rose vis-a-vis the British pound to 5.2345/2520 from 5.2573/2654. The local note also edged up versus the euro to 4.5796/5949 from 4.5853/5924.
The ringgit also trended firmer against its ASEAN peers. It inched up versus the Singapore dollar to 3.0701/0809 from 3.0755/0805.
It increased vis-a-vis the Thai baht to 12.4759/5269 from 12.5169/5435. The ringgit was higher against the Indonesian rupiah at 231.5/232.3 from 231.9/232.3.
It also gained versus the Philippine peso to 6.73/6.76 from 6.74/6.76 yesterday.