Ringgit Edges Up Against USD Ahead of Key US Economic Data Releases
The Malaysian ringgit opened higher against the US dollar on Monday ahead of key United States economic data releases. The local currency edged up to 4.0805/0900 against the greenback from last Friday's close of 4.0835/0875, according to Bernama.
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 a consensus estimate at 54.0, higher than June's reading of 53.3. The release is seen as important due to the impact it may have on market sentiment and economic growth.
However, Mohd Afzanizam noted that the market remains cautious, and 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 President Donald Trump cancelled the planned strike on Iran over the weekend.
The decision has sent oil prices and inflation breakevens lower, pulling down the US interest-rate curve, which should be supportive for the ringgit and risk assets across Asia today. The ringgit traded lower against a basket of major currencies at the opening, slipping against the Japanese yen to 2.5880/5942 from 2.5520/5548 at last Friday's close.