KUALA LUMPUR, July 3 — The ringgit closed higher against the United States (US) dollar today, supported by improved regional sentiment following a new US-Vietnam trade deal, said SPI Asset Management managing partner Stephen Innes.
At 6pm, the local note rose to 4.2195/2255 versus the greenback from Wednesday’s close of 4.2245/2305.
He said the agreement to impose a reduced 20 per cent tariff on Vietnamese exports, down from a previously threatened 46 per cent, has lifted risk appetite and supported regional currencies.
“The markets see this as a positive sign for global trade recovery, which helped boost the ringgit,” Innes told Bernama.
He added that the weaker-than-expected US ADP jobs data, with only 33,000 jobs added in June, reinforced expectations of two US rate cuts this year, which in turn pressured the US dollar.
Innes also noted that the market focus might shift on tonight’s non-farm payrolls report, with consensus at 106,000.
At the close, the ringgit traded mostly lower against a basket of major currencies.
It shrank against the euro to 4.9756/9827 from 4.9748/9818, and depreciated against the Japanese yen to 2.9333/9376 from 2.9316/9360.
However, it appreciated versus the British pound to 5.7621/7703 from 5.7859/7941 yesterday.
The local note traded mixed against its Asean counterparts.
It improved vis-à-vis the Singapore dollar to 3.3146/3196 from 3.3167/3217, and rose against the Thai baht to 13.0211/0457 from 13.0233/0482.
It slipped against the Indonesian rupiah to 260.5/261.0 from 259.9/260.5, and weakened against the Philippine peso to 7.50/7.51 from 7.49/7.51 previously.
— Bernama
