Ringgit Rides US Manufacturing Data Boost

The Malaysian ringgit opened stronger against major currencies on Tuesday and remained nearly unchanged against the US dollar, trading near RM4.09 amid upbeat US manufacturing data.

According to Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid, the US ISM Manufacturing PMI surprised on the upside as the index rose to 55.6 points in July from the consensus estimate of 54.0 points.

This reinforced expectations of a US interest rate hike, with Dr Afzanizam noting that firms in the US have been resilient despite higher import tariffs and energy prices.

However, responses among companies were mixed as freight costs remain elevated, leading them to focus on operational excellence to minimize the impact on profit margins.