Ringgit Rises Against US Dollar Amid Weaker Economic Data

The Ringgit opened slightly higher against the US dollar on Thursday, supported by improved market sentiment after weaker-than-expected US economic data weighed on the greenback.

At 8am, the local currency strengthened marginally to 4.0905/4.0960 against the US dollar from Wednesday's close of 4.0920/4.0960. The US Dollar Index (DXY) dropped by 0.18% to 99.676 due to softer-than-expected data.

Afzanizam Rashid, chief economist at Bank Muamalat Malaysia Bhd, noted that the Automatic Data Processing (ADP) Nonfarm Employment Change came in at 44,000 in July, below the consensus estimate of 68,000 and down from 95,000 in June. The US Institute for Supply Management (ISM) non-manufacturing index stood at 54.1 in July, below the consensus estimate of 54.5.

Despite this, Afzanizam said that US Federal Reserve governor Lisa Cook had indicated she would support an interest rate hike if inflation remained persistently high. Brent crude prices remain below $80 per barrel due to potential geopolitical tensions, supporting the Ringgit's strength.