THE ringgit slipped against the greenback at the opening today as the release of US macroeconomic data boosted the American currency. 

At 9am, the local note declined to 4.5445/5480 versus the greenback from yesterday’s closing rate of 4.5365/5395.

ActivTrades trader Dyogenes Rodrigues Diniz said US Initial Jobless Claims data – which measures the number of people who applied for unemployment insurance last week – came in below expectations at 242,000 against the forecast of 254,000.

“Another macroeconomic indicator that supported the US dollar was the US Philadelphia Fed Manufacturing Index, where today’s reading came in less negative than expected at -10.4 versus the forecast of -19.8, which was also positive for the greenback,” he said. 

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Federal Reserve has hinted that it will continue to raise the interest rate in June meeting to fight inflation.

“Despite the risk-on mode, the US Dollar Index (DXY) gained 0.64% to 103.544 points as the Fed remained hawkish,” he told Bernama.

He said the ringgit is likely to stay soft, noting that the current rate of RM4.5380 is close to the resistance level of RM4.5491. 

The ringgit traded higher against a basket of major currencies.

It strengthened vis-a-vis the British pound to 5.6411/6454 from 5.6452/6490 at the close yesterday, rose against the euro to 4.8958/8996 from 4.9076/9108 and was climbed against the Japanese yen to 3.2831/2861 from 3.2926/2950.

However, it traded mostly lower against Asean currencies.

It depreciated versus the Indonesian rupiah to 305.6/306.0 from 305.0/305.4 yesterday, declined to 3.3728/3756 against the Singapore dollar from 3.3724/3748 and slid against the Philippines’ pesos at 8.14/8.15 from 8.11/8.13.

The ringgit appreciated against the Thai baht to 13.1839/2002 from 13.2105/2247 yesterday. – Bernama, May 19, 2023.