KUALA LUMPUR: The ringgit fell on the first trading day of 2024 on caution ahead of a slew of economic data due this week, including European inflation and US jobs data.

       At 6 pm, the ringgit dropped to 4.6035/6080 versus the greenback from Friday’s close of 4.5900/598.

       Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid noted that the local currency fell to as low as RM4.6060 in the morning session before rising to RM4.6005 in the afternoon session.

       The dollar index, which measures the greenback against six major peers, rose 0.12 per cent to 101.450 points.

       He said from a technical standpoint, the ringgit is already in an overbought situation, which suggests some correction would occur.

       "Beyond technicals, views on interest rate cuts in the United States will continue to be the main driver for ringgit appreciation. Therefore, the incoming data points such as on US job openings and nonfarm payroll are critical to whether such a view would hold water,” he told Bernama.

       Meanwhile, the local note traded mostly higher against a basket of major currencies.

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       It was marginally higher against the Japanese yen at 3.2317/2552 from 3.2356/2415 on Friday and rose versus the euro to 5.0685/0734 from 5.0729/0817.

       However, the ringgit weakened vis-a-vis the British pound to 5.8524/8582 from 5.8321/8422.

       The ringgit was traded mixed against Asean currencies.

       It fell against the Singapore dollar to 3.4793/4830 from 3.4746/4812 at Friday’s close and depreciated against the Thai baht to 13.4838/5033 from 13.3422/3760.

       The local currency edged up versus the Indonesian rupiah to 297.5/298.0 from 298.1/298.6 and improved vis-à-vis the Philippine peso to 8.27/8.28 from 8.28/8.31. - Bernama