Ringgit extends downtrend on positive US economic data

At 9am, the local currency fell to a 67-month low of 4.4795/4820 against the greenback from Thursday’s close of 4.4720/4750. – Reuters image

Friday, August 19, 2022 10:39 AM MYT

KUALA LUMPUR, Aug 19 — The ringgit extended its downtrend against the US dollar today as demand for the greenback continued to rise on positive readings on the economic health of the United States (US). , one analyst said.

At 9am, the local currency fell to a 67-month low of 4.4795/4820 against the greenback from Thursday’s close of 4.4720/4750.

ActivTrades trader Dyogenes Rodrigues Diniz said the US dollar strengthened after the announcement of better-than-expected US initial jobless claims data, which showed the number of people who applied for unemployment benefits fell to 250,000 against the forecast of 265,000.

“Despite the recent flow of positive data that painted a positive picture for the US economy, the minutes of the US Federal Reserve meeting released yesterday seemed to suggest that the US central bank is not yet looking slow down the pace of interest rate hikes.

“This highlights the possibility of further appreciation of the US dollar against other currencies and against the ringgit,” he told Bernama.

He noted that the US dollar/ringgit pair could very well reach the 4.5000 mark.

“However, if the price manages to break below 4.4550, it could drop to 4.4000 in a few days,” Diniz added.

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

It gained against the Singapore dollar to 3.2299/2321 from 3.2371/2397 at Thursday’s close, and improved against the euro to 4.5153/5179 from 4.5471/5502 earlier.

The local unit also rose against the Japanese yen to 3.2877/3298 from 3.3077/3102 yesterday, and rose against the British pound to 5.3351/3381 from 5.3959/3995 on Thursday . – Bernama

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