Latest news with #DXY
The Star
5 hours ago
- Business
- The Star
Ringgit to trade firmer against US dollar next week, ahead of US labour data
KUALA LUMPUR: The ringgit is expected to trade firmer next week following the US labour market data, an analyst said. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said investors would pay attention on two key developments, namely the Nonfarm Payrolls (NFP) and the unemployment rate - and the expiry of the 90-day pause on US tariff implementation. "The labour market data will be pivotal in shaping expectations for the US Federal Reserve's policy direction, with greater emphasis likely to shift towards supporting maximum employment "With signs of a softening global and US economy emerging, investor sentiment is expected to remain cautious heading into the second half of 2025,' he told Bernama. Mohd Afzanizam said the US job market is showing moderation, with the monthly average NFP standing at 123,800 in the first five months of 2025, down from 179,600 in the same period last year. The unemployment rate had risen from 4.0 per cent in January to 4.2 per cent in March this year, he added. On the currency front, he said the ringgit has shown resilience this week, rebounding from RM4.2948 against the US dollar on June 23 to RM4.2327 on June 26, marking a 1.5 per cent appreciation. "With the US Dollar Index (DXY) on a softer trajectory, we anticipate the ringgit could trade firmer around RM4.22 to RM4.23 in the coming week,' he said. The ringgit ended the week higher against the greenback, closing at 4.2300/2355 on Thursday from 4.2505/2565 last Friday. The local note traded lower against a basket of major currencies. The ringgit depreciated vis-à-vis the Japanese yen to 2.9359/9399 from 2.9245/9289 at last Friday's close, shed against the British pound to 5.8141/8217 from 5.7356/7437 previously, and slid versus the euro to 4.9597/9661 from 4.9000/9069 at the end of last week. The ringgit also traded lower against ASEAN currencies. The local note dropped against the Singapore dollar to 3.3192/3240 on Thursday from 3.3088/3140 last Friday, and weakened versus the Thai baht to 13.0254/0488 from 12.9727/9969 last week. It fell versus the Indonesian rupiah to 260.9/261.4 on Thursday from 259.2/259.7 last Friday and was marginally lower against the Philippine peso at 7.47/7.49 compared to 7.43/7.45 previously. The market was closed on Friday for the Maal Hijrah public holiday. - Bernama
Malaysian Reserve
11 hours ago
- Business
- Malaysian Reserve
Ringgit to trade firmer against US dollar next week, ahead of US labour data
KUALA LUMPUR — The ringgit is expected to trade firmer next week following the US labour market data, an analyst said. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said investors would pay attention on two key developments, namely the Nonfarm Payrolls (NFP) and the unemployment rate — and the expiry of the 90-day pause on US tariff implementation. 'The labour market data will be pivotal in shaping expectations for the US Federal Reserve's policy direction, with greater emphasis likely to shift towards supporting maximum employment 'With signs of a softening global and US economy emerging, investor sentiment is expected to remain cautious heading into the second half of 2025,' he told Bernama. Mohd Afzanizam said the US job market is showing moderation, with the monthly average NFP standing at 123,800 in the first five months of 2025, down from 179,600 in the same period last year. The unemployment rate had risen from 4.0 per cent in January to 4.2 per cent in March this year, he added. On the currency front, he said the ringgit has shown resilience this week, rebounding from RM4.2948 against the US dollar on June 23 to RM4.2327 on June 26, marking a 1.5 per cent appreciation. 'With the US Dollar Index (DXY) on a softer trajectory, we anticipate the ringgit could trade firmer around RM4.22 to RM4.23 in the coming week,' he said. The ringgit ended the week higher against the greenback, closing at 4.2300/2355 on Thursday from 4.2505/2565 last Friday. The local note traded lower against a basket of major currencies. The ringgit depreciated vis-à-vis the Japanese yen to 2.9359/9399 from 2.9245/9289 at last Friday's close, shed against the British pound to 5.8141/8217 from 5.7356/7437 previously, and slid versus the euro to 4.9597/9661 from 4.9000/9069 at the end of last week. The ringgit also traded lower against ASEAN currencies. The local note dropped against the Singapore dollar to 3.3192/3240 on Thursday from 3.3088/3140 last Friday, and weakened versus the Thai baht to 13.0254/0488 from 12.9727/9969 last week. It fell versus the Indonesian rupiah to 260.9/261.4 on Thursday from 259.2/259.7 last Friday and was marginally lower against the Philippine peso at 7.47/7.49 compared to 7.43/7.45 previously. The market was closed on Friday for the Maal Hijrah public holiday. — BERNAMA
BusinessToday
a day ago
- Business
- BusinessToday
Ringgit Could Bounce Back Next Week
The Malaysian Ringgit experienced a volatile week, initially weakening to nearly 4.30 per US Dollar following US strikes on Iran over the weekend, before recovering much of its ground as geopolitical tensions eased. The currency is now expected to trade within a range of 4.22-4.26/USD in the week ahead, with market attention shifting firmly back to US macroeconomic indicators. While the Ringgit had been trading broadly stable in line with expectations, Monday saw markets unsettled by the geopolitical developments, pushing the currency close to the 4.30/USD mark. However, this initial risk-off sentiment dissipated swiftly. The US Dollar Index (DXY) traded on a softer footing this week, ranging between 97.7 and 98.4, even amidst the initial geopolitical stir. Notably, investors turned towards Euro-denominated assets rather than the greenback, as the spike in oil prices proved short-lived. Risk appetite recovered significantly after President Donald Trump announced a ceasefire between Iran and Israel, helping to reverse much of the Ringgit's earlier weakness. A subsequent pullback in both oil prices and the DXY further reinforced this recovery, driven by increasingly dovish signals from the Federal Reserve. Markets are now closely monitoring upcoming US economic data. The US core Personal Consumption Expenditures (PCE) reading, due tomorrow, is a key focus, with consensus expecting a 0.1% month-on-month increase. Attention will then shift to next week's crucial labor market data, where Non-Farm Payrolls (NFP) are anticipated to ease towards the 100.0k mark and the unemployment rate could potentially rise to 4.3%. June's manufacturing data will also be scrutinized for early signs of any tariff-related strain on the economy. With geopolitical risks largely unwound, the focus is squarely returning to US macro data. Softer employment figures could reinforce expectations of a Federal Reserve rate cut as early as September, aligning with analysts' base case. Fiscal developments in the US may also take center stage, particularly President Trump's proposed 'big, beautiful bill,' which is expected to get a Senate vote by July 4th. Technically, Kenanga Research said the USDMYR pair remains anchored around its 5-day Exponential Moving Average (EMA) at 4.24. Its direction in the coming week will largely hinge on incoming US macroeconomic data, with key support identified at 4.20 and resistance at 4.27. Related
Yahoo
2 days ago
- Business
- Yahoo
Dollar Weakness and Stock Strength Push Crude Oil Prices Higher
August WTI crude oil (CLQ25) today is up +1.41 (+2.17%), and August RBOB gasoline (RBQ25) is up +0.0380 (+1.84%). Crude oil and gasoline prices are sharply higher today due to the decline in the dollar index (DXY00) to a 3-1/4 year low. Also, today's rally in the S&P 500 to a 4-month high shows confidence in the economic outlook, which is supportive for energy demand and crude prices. Crude oil also has carryover support from Wednesday's EIA report, which showed a larger-than-expected draw in crude oil inventories and a surge in US gasoline demand to a 3-1/2 year high. Nat-Gas Prices Pressured by the Outlook for Cooler US Temps Crude Prices Settle Higher as Weekly EIA Inventories Tumble Dollar Weakness and Stock Strength Push Crude Oil Prices Higher Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Crude oil prices have underlying support after US and European intelligence reports suggest that Iran still has all or some of its stockpile of 60% enriched uranium even after the US bombing, which means that there will be continued pressure on Iran for a nuclear-inspection agreement and continued sanctions until that agreement happens. However, the US and Iran have talks scheduled for next week, and the US may nevertheless gloss over the enriched uranium problem and offer to reduce or eliminate sanctions. Concern about a global oil glut is negative for crude prices. On Wednesday, Russia stated that it is open to another output hike for OPEC+ crude production in August, when the group meets on July 6. On May 31, OPEC+ agreed to a 411,000 bpd crude production hike for July after raising output by the same amount for June. Saudi Arabia has signaled that additional similar-sized increases in crude output could follow, which is viewed as a strategy to reduce oil prices and punish overproducing OPEC+ members, such as Kazakhstan and Iraq. OPEC+ is boosting output to reverse the 2-year-long production cut, gradually restoring a total of 2.2 million bpd of production. OPEC+ had previously planned to restore production between January and late 2025, but now that production cut won't be fully restored until September 2026. OPEC May crude production rose +200,000 bpd to 27.54 million bpd. Gasoline prices have support from the American Automobile Association (AAA) projection that a record 61.6 million people will travel by car this Fourth of July holiday (June 28 to July 6), up +2.2% from last year and a sign of stronger gasoline demand. Oil prices continue to be undercut by tariff concerns, as President Trump recently stated that he intends to send letters to dozens of US trading partners within one to two weeks, setting unilateral tariffs ahead of the July 9 deadline that followed his 90-day pause. A decline in crude oil held worldwide on tankers is bullish for oil prices. Vortexa reported Monday that crude oil stored on tankers that have been stationary for at least seven days fell by -13% w/w to 79.66 million bbl in the week ended June 20. Wednesday's EIA report showed that (1) US crude oil inventories as of June 20 were -10.9% below the seasonal 5-year average, (2) gasoline inventories were -2.8% below the seasonal 5-year average, and (3) distillate inventories were -20.3% below the 5-year seasonal average. US crude oil production in the week ending June 20 was unchanged w/w at 13.435 million bpd, modestly below the record high of 13.631 million bpd from the week of December 6. Baker Hughes reported last Friday that active US oil rigs in the week ending June 20 fell by -1 to a 3-3/4 year low of 438 rigs. Over the past 2-1/2 years, the number of US oil rigs has fallen from the 5-1/4 year high of 627 rigs posted in December 2022. On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
The Star
2 days ago
- Business
- The Star
Ringgit climbs as Trump ramps up pressure on Fed to cut interest rates
KUALA LUMPUR: The ringgit extended its gains against the greenback at the close on Wednesday, as US President Donald Trump ramped up pressure on the US Federal Reserve (Fed) to cut interest rates. It has been reported that Trump is considering naming a new Fed chairman early, a move seen as undermining the current chairman, Jerome Powell, who has been reluctant to cut interest rates as demanded by the US president. At 6 pm, the local note inched up to 4.2300/2355 versus the greenback from Wednesday's close of 4.2335/2405. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said news of Trump's intention to name the next Fed chair early caused the US Dollar Index (DXY) to fall 0.60 per cent to 97.093 points. "It remains to be seen how this can be made possible as the current chairman's term will end in May next year. Despite that, the underlying tone is about pressing the Fed to lower the Fed funds rate as soon as possible," he told Bernama. At the close, the ringgit traded lower against a basket of major currencies and ASEAN countries. It depreciated against the Japanese yen to 2.9359/9399 from 2.9070/9120, slid versus the British pound to 5.8141/8217 from 5.7631/7726, and slid against the euro to 4.9597/9661 from 4.9113/9194 yesterday. Against its ASEAN peers, the ringgit declined vis-à-vis the Singapore dollar to 3.3192/3240 from 3.3061/3121, and dipped against the Thai baht to 13.0254/0488 from 12.9584/9858 at Wednesday's close. It eased against the Indonesian rupiah to 260.9/261.4 from 259.7/260.2, and slipped against the Philippine peso to 7.47/7.49 from 7.46/7.48, previously. - Bernama
