Ringgit gains in early trade on weaker US dollar index

KUALA LUMPUR: The ringgit was higher against the US dollar in the early session today, tracking a weaker US dollar index (DXY) as traders positioned ahead of key US labour market and consumer confidence data.

At 8.03am, the local currency was pegged at 4.0605/4.0730 against the greenback from Monday’s close of 4.0680/4.0735.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the US dollar remained at an elevated level in the absence of market-moving data points while the DXY stood at 101.10 points, declining by 0.25% from the previous close.

“Expect the ringgit to trade within a range of 4.06 to 4.08 as traders continue to observe the US data points.

“Tonight, Job Openings and Labour Turnover (JOLTS) and Conference Board Consumer Confidence will be released, with confidence among consumers expected to improve in June,” he added.

At the opening, the ringgit traded mostly higher against a basket of major currencies.

It fell against the British pound to 5.3810/5.3975 from 5.3767/5.3839 at Monday’s close, rose versus the euro to 4.6363/4.6506 from 4.6383/4.6446 and appreciated vis-a-vis the Japanese yen at 2.5073/2.5151 from 2.5128/2.5164.

The local note was traded mixed against regional currencies.

It went up against the Singapore dollar to 3.1406/3.1505 from 3.1445/3.1490 at Monday’s close, was almost flat versus the Indonesian rupiah at 227.4/228.2 from 227.8/228.3 and was flat against the Philippine peso at 6.63/6.66 from 6.65/6.66.

The local note advanced versus the Thai baht to 12.1966/12.2412 from 12.2199/12.2412.