Ringgit Rallies as Weaker US Data Cools Dollar Strength

The Malaysian ringgit has strengthened against the US dollar after weaker-than-expected US economic data weighed on the greenback. At 8am on Wednesday, the local currency edged up to 4.0940/4.0995 against the greenback from Tuesday’s close of 4.0945/4.0985.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid attributed the support for the ringgit to a decrease in job openings, which fell for a second consecutive month to 7.36 million in June from 7.54 million in May.

SPI Asset Management managing partner Stephen Innes noted that while the ringgit is expected to trade with a firmer bias due to sustained capital inflows into Asia’s technology sector and resilient global risk sentiment, gains may be capped ahead of the release of the US non-farm payrolls report on Friday.

The ringgit traded lower against major currencies, including the Japanese yen, euro, British pound, and regional currencies such as the Singapore dollar and Thai baht. However, it was unchanged against the Philippine peso.