Ringgit eases versus US dollar amid wait-and-see mode

Ringgit eases versus US dollar amid wait-and-see mode
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KUALA LUMPUR (Sept 8): The ringgit eased versus the US dollar at today's opening as traders await Bank Negara Malaysia’s (BNM) interest rate decision and the release of the US jobs data report tomorrow.

At 9am today, the local note had declined to 4.1565/1595 against the greenback from 4.1545/1560 at yesterday's close.

ActivTrades trader Dyogenes Rodrigues Diniz said the local currency was trading at the 4.1540 level.

“From a technical point of view, if USD-MYR (the US dollar to ringgit exchange rate) breaks below 4.1430, it could drop to 4.1200, where it will find some support. On the other hand, if it breaks above 4.1600, it could rise to 4.2100 in the next few days,” the trader said.

According to a Reuters poll yesterday, BNM is likely to keep its lending rate unchanged this week as the country gradually resumes its economic activities following the rising Covid-19 vaccination rate.

Some analysts believe that the reduction in the 2021 gross domestic product (GDP) growth forecast might have spurred market speculation of another rate cut to further support economic recovery.

At the opening bell, the local note was traded higher against a basket of major currencies.

It rose against the Singapore dollar to 3.0894/0919 from 3.0902/0918 at the close yesterday and appreciated versus the yen to 3.7687/7718 from 3.7785/7799 previously.

It also improved vis-a-vis the euro to 4.9238/9273 from 4.9314/9332 yesterday and strengthened to 5.7297/7339 from 5.7403/7423 against the British pound.