Ringgit opens flat against dollar after upbeat US factory data
The local currency is little changed at 4.0935/4.1000 while gaining against other major currencies.
KUALA LUMPUR - The Malaysian ringgit opened flat against the US dollar on Tuesday, following positive US manufacturing data, according to wire reports. The local currency was almost unchanged at 4.0935/4.1000, mirroring Monday's close of 4.0935/4.0975. Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid highlighted that the US ISM Manufacturing PMI increased to 55.6 points in July, surpassing the 54.0 point consensus estimate, which suggests a potential US interest rate hike.
Despite the optimism, Afzanizam noted that higher import tariffs and energy prices had led to mixed responses among US firms, particularly in technology and AI sectors. The US Dollar Index (DXY) remained steady at 99.952 points due to declining crude oil prices, driven by optimism over the possibility of renewed negotiations between the US and Iran to reopen the Strait of Hormuz.
Meanwhile, SPI Asset Management's Stephen Innes stated that despite strong performance in US tech stocks, the ringgit could remain within a narrow range due to domestic political uncertainty, specifically the outcome of the July 11 Johor state election and its impact on Pakatan Harapan's political standing. The ringgit demonstrated strength against several major currencies, including the Japanese yen, euro, and British pound, while showing mixed performances against regional currencies such as the Singapore dollar, Thai baht, Indonesian rupiah, and Philippine peso.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
