Kuala lumpur: The ringgit continued its upward trajectory, reaching 4.12 against the US dollar at the opening on Wednesday, marking its highest level in over 13 months. This surge was attributed to a softer US dollar following the release of weaker US economic data.
According to BERNAMA News Agency, at 8.04 am, the ringgit appreciated to 4.1285/1440 against the US dollar, compared to Tuesday's close of 4.1360/1395. The local currency has not seen such levels since September 30, 2024, when it closed at 4.1210.
The ringgit also demonstrated strength against the Singapore dollar, trading at 3.1733, its highest in over three years, as opposed to 3.1711 on July 14, 2022. Mohd Sedek Jantan, director of investment strategy and country economist at IPPFA Sdn Bhd, noted that recent US Automatic Data Processing (ADP) employment data indicated a cooling US labor market, with private employers shedding an average of 11,250 jobs weekly for the four weeks ending October 25.
"The weaker-than-expected private payroll gains in October have bolstered market confidence that the Federal Reserve's rate-hiking cycle might have concluded, lowering the US dollar index overnight," he explained to Bernama. "This change has improved sentiment towards risk-sensitive Asian currencies, putting the ringgit in a stronger position."
Mohd Sedek further opined that with the easing dollar momentum and stable domestic fundamentals, the ringgit's near-term outlook remains positive, bolstered by renewed foreign interest and improving local market confidence.
At the opening, the ringgit also strengthened against a selection of major currencies. It gained against the yen to 2.6788/6864 from 2.6798/6822 at Tuesday's close and rose against the euro to 4.7825/7958 from 4.7829/7869. The local currency also improved against the British pound to 5.4294/4445 from 5.4297/4343.
Additionally, the ringgit showed strength against ASEAN currencies. It appreciated against the Singapore dollar to 3.1733/1824 from 3.1752/1784 at Tuesday's close, climbed against the Philippine peso to 7.00/7.02 from 7.01/7.02, improved against the Thai baht to 12.7427/7892 from 12.7595/7762, and was higher against the Indonesian rupiah at 247.2/248.1 from 247.7/248.0 on Tuesday.