KUALA LUMPUR, 6 October 2022 – In line with the positive risk conviction ahead of this Friday’s Budget 2023 release, the ringgit started the day slightly higher versus the US dollar.
The local currency increased slightly from Tuesday’s close of 4.6420/6450 to 4.6355/6400 at 9 am. Stephen Innes, managing partner at SPI Asset Management, told Bernama that due to broader US dollar weakness and budget concerns, the ringgit could rise in the early session.
Investors are now awaiting the publication of the United States’ (US) ADP Non-Farm Employment statistics, according to ActivTrades trader Dyogenes Rodrigues Diniz, which will provide them additional information about the current state of the US economy.
He did note that the Producer Price Index (PPI) data from the European Union, which reached a new record high of 43.3% year-over-year in August 2022, up from 38% in July 2022, might have an impact on how the US dollar performs.
“The energy crisis brought on by Russia’s conflict with Ukraine has an impact on the entire market and exacerbates the inflation condition in Europe, with many investors opting to sell risky assets and purchase safe-haven assets,” he added.
The ringgit was trading at a lower rate versus a basket of major currencies at the same time.
The local currency depreciated marginally against the British pound (from 5.2752/2786 at Tuesday’s closing to 5.3039/3091) and the Singapore dollar (from 3.2462/2487 yesterday to 3.2555/2591).
In addition, it dropped in value versus the Japanese yen, where it closed yesterday at 3.2067/2090, and also against the euro, where it dropped to 4.6248/6293 from 4.5863/5893.
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