Among others, the just released data shows that the unemployment rate has been falling in recent months, raising demand for the local currency this morning.

At 9am, the ringgit rose 20 basis points to 4.3700/4.3760 against the greenback from yesterday’s close of 4.3720/4.3765.

ActivTrades trader Dyogenes Rodrigues Diniz said although the inflation rate in Malaysia remained high at 4% in November 2022, it was still lower than that in the US, which last read 7.1% for the same month.

“All these numbers point to a favourable economic situation in Malaysia, which should encourage the entry of foreign capital into the country, causing the US dollar-ringgit to fall over the next few months,” he told Bernama.

“From a technical point of view, if the US dollar-ringgit drops below the 4.3650 level, it may reach as low as 4.2400 before finding some more important support,” he added.

Meanwhile, the ringgit traded lower against a basket of major currencies.

It fell against the Singapore dollar to 3.2835/3.2885 from 3.2793/3.2832 at yesterday’s close and weakened vis-a-vis the Japanese yen to 3.3184/3.3235 from 3.3009/3.3045 previously.

The local currency depreciated versus the British pound to 5.3196/5.3269 from 5.3124/5.3179 yesterday and eased against the euro to 4.6877/4.6941 from 4.6636/4.6684.