The ringgit regains strength against the US dollar at the open

KUALA LUMPUR: The ringgit regained some strength to open higher against the US dollar as demand for the greenback weakened on expectations of aggressive monetary policy from the US Federal Reserve (Fed) in the third quarter. week of this month.

At 9:02 a.m., the local currency rose to 4.3805/3840 against the US dollar from Wednesday’s close at 4.3880/3910.

Stephen Innes, managing partner of SPI Asset Management, said investors were also focused on the release of US non-farm payrolls (NFP) data today, providing the ringgit with a favorable trading backdrop.

“Furthermore, risk sentiment is seen as more stable, also supported by firmer oil prices. However, the ringgit may move into the range ahead of the NFP release,” Innes told Bernama.

At the time of writing, the benchmark Brent crude oil price rose 0.07% to US$117.70 per barrel.

On the local front, Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said on Thursday that the Malaysian economy’s expansion of 3.6% in the fourth quarter of 2021 and 5.0% in the first quarter of 2022 will continue to contribute to strengthen the ringgit.

He said this was also reflected in the latest analysis from the International Monetary Fund (IMF) which forecast Malaysia’s gross domestic product (GDP) growth of 5.75% for 2022, driven by pent-up domestic demand and demand. exterior always strong.

The Ministry of Finance is confident in the country’s strong economic growth projection of between 5.3 and 6.3% in 2022, thus contributing to the stability of the ringgit.

Meanwhile, the ringgit was trading mostly lower against a basket of major currencies.

The local rating depreciated against the Singapore dollar at 3.1960/1991 from Thursday’s close at 3.1901/1928 but rose against the Japanese yen at 3.3745/3775 from 3 ,3803/3829.

The ringgit traded lower against the pound at 5.5085/5129 from 5.5034/5072 on Wednesday and fell against the euro at 4.7125/7163 from 4.6895/6927 previously.-BERNAMA

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