Ringgit Steadies Against US Dollar Amid Boosted Rate Hike Bets
The Malaysian ringgit rose against most major currencies on Tuesday but remained almost unchanged against the US dollar. The local currency opened at RM4.0935/4.1000, little changed from Monday's close of RM4.0935/4.0975.
Dr Mohd Afzanizam Abdul Rashid, chief economist of Bank Muamalat Malaysia Bhd, attributed the stability to stronger-than-expected US manufacturing data. The US Institute for Supply Management (ISM) Manufacturing PMI rose to 55.6 points in July from 54.0 points in June.
The data reinforced expectations of a US interest rate hike, with Dr Afzanizam noting that US firms had remained resilient despite higher import tariffs and energy prices. Technology and artificial intelligence-related sectors recorded particularly positive responses.