KUALA LUMPUR (Jan 7): The ringgit opened flat against the US dollar on Friday (Jan 7) amid optimism over US employment data and firmer oil prices.
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At 9am, the local currency was trading at 4.2130/2160 against the greenback from 4.2130/2150 at Thursday’s close.
ActivTrades trader Dyogenes Rodrigues Diniz said the US dollar was steady due to US initial jobless claims data, which came in higher than expected at 207,000 versus the forecast of 197,000, reflecting investors’ confidence on the back of the release of the ADP non-farm employment change number on Wednesday.
“The picture painted by this data is that of a strong economic recovery in the US job market and this is expected to be confirmed by US non-farm payrolls to be released later today (Friday),” he told Bernama.
From a technical standpoint, Diniz said the US dollar-to-ringgit exchange rate is likely to test the 4.24 level in the next few days.
Meanwhile, oil prices, which lent some support to the local note, advanced on Thursday amid lower production from the Organization of the Petroleum Exporting Countries (OPEC), adding just 90,000 barrels a day in a survey for December.
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Besides, investors also had concerns about limited production following a state of emergency in Kazakhstan, a major oil producer, following protests against an increase in fuel prices.
The ringgit also traded mixed against a basket of other major currencies.
It depreciated versus the Singapore dollar to 3.0960/0986 from Thursday’s close at 3.0948/0965 but increased against the Japanese yen to 3.6335/6364 from 3.6390/6415.
The local currency eased vis-a-vis the British pound to 5.7040/7080 from 5.6867/6903 on Thursday but rose against the euro to 4.7594/7628 from 4.7620/7646.-BERNAMA