The ringgit opened lower against the US dollar this morning despite being supported by domestic strength and a recovery in oil prices.
At 10:24 am, the ringgit was trading at 3.9420, down 0.33% against the US dollar since opening early Thursday in the Asian session.
This situation occurred following the strengthening of the US dollar following mixed economic data from the United States (US).
Director of Investment Strategy and National Economist at IPPFA Sdn Bhd, Mohd Sedek Jantan informed that data from the US Automatic Data Processing (ADP) showed that private payrolls increased by 22,000 in January.
This figure was below the consensus estimate of 46,000 and down 37,000 from December last year, reflecting the slowing momentum of hiring.
However, wage growth for non-employed individuals was still high at 4.5% year-on-year, indicating continued pressure on labor costs in the US.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid explained that market sentiment is expected to remain cautious due to geopolitical issues between the US and Iran.
Investors are now fully focused on the planned talks between the two countries.
He also noted that Brent crude oil rose more than 3% to $69.46 per barrel due to the recent escalation of tensions.
At the opening, the ringgit traded higher against a basket of currencies.
It rose against the euro to 4.6346/6464 from 4.6443/6490, surged against the British pound to 5.3584/3720 from 5.3887/3942 and strengthened against the Japanese yen to 2.5025/5091 from 2.5091/5118.
The ringgit was also traded higher against ASEAN currencies.
It increased against the Singapore dollar to 3.0846/0929 from 3.0912/0946 and increased against the Thai baht to 12.3716/4125 from 12.4206/4391.
It also rose slightly against the Indonesian rupiah to 234.0/234.7 from 234.2/234.6 and was unchanged against the Philippine peso at 6.66/6.68 previously.
