Ringgit Edges Higher as Trump Cancels Planned Iran Strikes
The Malaysian ringgit rose slightly against the US dollar on Monday morning ahead of key United States economic data releases. At 8am, the local currency edged up to 4.0805/0900 against the greenback from last Friday's close of 4.0835/0875.
According to Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, market sentiment was influenced by easing tensions in West Asia. The US Institute for Supply Management (ISM) Manufacturing PMI for July is expected to be released tonight with a consensus estimate of 54.0, higher than June's reading of 53.3.
President Donald Trump reportedly cancelled the planned military strikes against Iran over the weekend, citing a deal on the nuclear programme and the full reopening of the Strait of Hormuz. This decision has sent oil prices lower, pulling down the US interest-rate curve, said Stephen Innes, managing partner at SPI Asset Management.
The ringgit traded mixed against regional currencies, gaining against the Indonesian rupiah to 226.4/227.0 and rising versus the Thai baht to 12.2211/2558.