Ringgit extends uptrend against US Dollar on lower unemployment data

Publish date: Thu, 12 Jan 2023, 10:20 AM

KUALA LUMPUR: The ringgit extended its uptrend versus the US dollar by opening higher this morning, as demand for the local note improved after the just-released November 2022 unemployment data painted a positive economic outlook, an analyst said. 

At 9 am, the local note rose to 4.3630/3680 against the greenback from Wednesday's close of 4.3700/3725.

According to the Statistics Department, the country's unemployment rate showed a downward trend with 600,900 persons unemployed in November 2022 compared to 602,000 in October 2022. 

The department also said yesterday that Malaysia's wholesale and retail trade sales expanded 13.9 per cent year-on-year (y-o-y) to RM133.9 billion in November 2022, mainly boosted by the growth in the retail trade sub-sector.

The manufacturing sector also continued its double-digit growth to record RM159.2 billion in sales in November 2022, an increase of 11.8 per cent y-o-y.

Meanwhile, the industrial production index rose by 4.8 per cent in November 2022 against 4.6 per cent in the preceding month, supported by expansion in mining, manufacturing and electricity sectors. 

"We are heading towards better economic growth overall post-pandemic. The improvement in these economic sectors has increased investors' confidence regarding our future economic growth," the analyst told Bernama. 

On external factors, ActivTrades trader Dyogenes Rodrigues Diniz said investor sentiment turned cautious ahead of the release of the United States (US) Consumer Price Index (CPI) data.

The CPI measures the variation in the price of goods, products and services, and is a reading of inflation in the US.

"This is a very closely watched indicator and influences the decisions of the US Federal Reserve and its monetary policies; hence markets are often quiet ahead of the release.

"From a technical point of view, the US dollar-ringgit is in a support region and if the price manages to break above 4.4060, it could rise as high as 4.4850 within a few days. If it breaks below the 4.3600 area, however, it may fall as low as 4.2500," he said. 

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

The local currency eased versus the British pound to 5.3024/3084 from 5.3017/3047 at Wednesday's close, fell against the euro to 4.6959/7013 from 4.6938/6965 previously, and declined vis-a-vis the Japanese yen to 3.3083/3126 from 3.2984/3007.

However, it appreciated against the Singapore dollar to 3.2797/2840 from 3.2820/2841 at yesterday's close.

  - Bernama

Be the first to like this. Showing 0 of 0 comments

Post a Comment