KUALA LUMPUR, Aug 3 —The ringgit opened slightly higher against the US dollar on Monday ahead of the release of key United States (US) economic data today amid easing tensions in West Asia.
At 8am, the local currency edged up to 4.0805/0900 against the greenback from last Friday’s close of 4.0835/0875.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Institute for Supply Management (ISM) Manufacturing PMI for July will be released tonight, with the consensus estimate at 54.0, which is higher than June's reading of 53.3.
"Additionally, uncertainties over the West Asia conflict also weighed on market sentiment, with Brent crude oil rising 4.59 per cent to US$88.10 per barrel.
"President Donald Trump reportedly said over the weekend that he has cancelled the planned military strikes against Iran as both countries are expected to reach a deal on the nuclear programme and the full reopening of the Strait of Hormuz,” he told Bernama.
However, Mohd Afzanizam said the market remains cautious; thus, the local note is expected to trade within a narrow range of RM4.07 to RM4.09 today.
Meanwhile, SPI Asset Management managing partner Stephen Innes said the US dollar weakened after Trump cancelled the planned strike on Iran over the weekend.
He said the decision has sent oil prices and inflation breakevens lower, pulling down the US interest-rate curve.
"That combination should be supportive for the ringgit and, more broadly, for risk assets across Asia today,” he added.
The ringgit traded lower against a basket of major currencies at the opening.
It slipped against the Japanese yen to 2.5880/5942 from 2.5520/5548 at last Friday's close, fell versus the euro to 4.7089/7199 from 4.6981/7027 and depreciated against the British pound to 5.5038/5166 from 5.4923/4977.
Against regional currencies, the ringgit traded mixed.
It gained against the Indonesian rupiah to 226.4/227.0 from 226.6/226.8 and rose versus the Thai baht to 12.2211/2558 from 12.2264/2435.
However, it softened against the Singapore dollar to 3.1844/1921 from 3.1823/1856 and was little changed versus the Philippine peso to 6.66/6.68 from 6.66/6.67. — Bernama
