Ringgit Holds Firm as Global Tensions Escalate Ahead of US Jobs Data
The ringgit opened mostly higher against major currencies on August 7, but remained steady against the US dollar ahead of the release of the United States' non-farm payrolls (NFP) data.
According to Bank Muamalat Malaysia Bhd's chief economist Dr. Mohd Afzanizam Abdul Rashid, the NFP report is expected to drive the US dollar higher as the US labor market remains resilient.
The US Dollar Index rose by 0.25% to 99.930 points, with initial jobless claims slightly higher last week at 199,000 from 198,000 in the prior week.
Meanwhile, Quintex Intel's global strategist Stephen Innes expects the ringgit to ease due to renewed concerns over regional security and energy flows following additional details regarding the Iran-Oman Strait of Hormuz agreement.