KUALA LUMPUR, June 7 — The ringgit closed the shortened trading week higher on softer US economic data this week and ahead of key US employment data later tonight, with rate cuts by the European Central Bank (ECB) and the Bank of Canada pointing to a lower global interest rate outlook.
At 6pm, the ringgit improved to 4.6900/6940 against the greenback from 4.6935/6965 registered at yesterday’s close.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the latest global economic developments have given the impression to markets that interest rates have peaked and the US Federal Reserve (Fed) might follow suit, albeit slightly delayed.
“The ECB cut its interest rates yesterday for the first time since 2019 as the eurozone inflation gradually eases while the Bank of Canada trimmed its key policy rate on Wednesday, and we foresee the United States taking a similar step,” he told Bernama.
Meanwhile, US non-farm payrolls data will be released later tonight.
At the close, the ringgit traded easier against a basket of major currencies.
The local unit weakened versus the Japanese yen to 3.0163/0190 from 3.0094/0113, eased vis-a-vis the British pound to 6.0009/0060 from 5.9997/6.0035 previously and was lower against the euro at 5.1079/1122 from 5.1065/1098.
The ringgit was traded mixed against its Asean peers.
It improved against the Thai baht to 12.8465/8627 from 12.8660/8798 at yesterday’s close but was flat versus the Philippine peso and remained at 8.01/8.02 since yesterday’s close.
It declined versus the Singapore dollar to 3.4872/4905 compared with 3.4842/4866 yesterday, and slipped to 289.5/289.9 vis-a-vis the Indonesian rupiah from yesterday’s 288.6/288.8. — Bernama
