KUALA LUMPUR: The ringgit ended the week higher in opposition to the US greenback on enhancing domestic demand following the current sell-off, mentioned an analyst.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid mentioned whereas there was a slight enchancment, market individuals remained attentive to the prospect of higher rates of interest within the US.
“This week noticed US Treasury yields rise to greater than 4.6%, the very best in 16 years because the Federal Reserve is predicted to maintain its benchmark rates of interest higher for a protracted interval.
“Investors will proceed to evaluate the incoming knowledge factors, and considerations over extremely restrictive US financial coverage stance will persistently dictate the market sentiments,” he instructed eNM.
Meanwhile, SPI Asset Management managing director Stephen Innes opined that the ringgit strengthened at the moment as US yields adjusted decrease to the weaker-than-expected US financial knowledge.
In addition, indicators of financial life in China are additionally serving to Asia’s overseas alternate (foreign exchange) restoration because the nation’s present financial knowledge has proven a gradual enchancment from an prolonged trough.
“On the broader foreign exchange markets, some month-end changes have merchants lowering US greenback publicity forward of the US private consumption expenditures inflation report later at the moment, which is able to doubtless affect the greenback route subsequent week,” he mentioned.
At 6pm, the native foreign money rose to 4.6930/4.6970 in opposition to the buck from Wednesday’s shut of 4.7055/4.7105.
The market was closed on Thursday along with the Maulidur Rasul (Prophet Muhammad’s birthday) celebration.
The ringgit was traded decrease versus a basket of main currencies.
It declined in opposition to the euro to 4.9802/4.9845 from 4.9690/4.9743 on Wednesday and depreciated vis-a-vis the British pound to five.7522/5.7571 from 5.7167/5.7228.
However, it appreciated in opposition to the Japanese yen to three.1482/3.1511 from 3.1534/3.1570 at Wednesday’s shut.
Meanwhile, the native foreign money was additionally traded decrease in opposition to different Asian currencies.
It weakened versus the Thai baht to 12.8808/12.8964 from 12.8759/12.8949 on Wednesday and edged down in opposition to the Indonesian rupiah to 303.5/303.9 from 303.1/303.6 beforehand.
It was simpler in opposition to the Philippine peso at 8.29/8.30 in contrast with Wednesday’s closing of 8.26/8.28 and slipped vis-a-vis the Singapore greenback to three.4457/3.4489 from 3.4334/3.4373 beforehand.
