Ringgit Gains on Weaker US Consumer Confidence

The ringgit strengthened against the US dollar in early trading on July 1, buoyed by weaker-than-expected consumer confidence data from the United States. According to Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid, the US Conference Board Consumer Confidence Index came in at 91.2 points in June, below the consensus estimate of 94.4 points.

The ringgit traded higher against a basket of major currencies, appreciating against the British pound to 5.4027/4153 and vis-a-vis the Japanese yen at 2.5066/5126. However, it eased slightly versus the euro to 4.6537/6645.

Investors remain cautious ahead of the release of the US nonfarm payrolls report later this week, which is expected to show a 114,000 increase in June compared to 172,000 in May. The market sentiment appears to be focused on the US Federal Reserve's decision regarding a rate hike.