Ringgit closes higher ahead of key US economic data

KUALA LUMPUR: The Malaysian ringgit ended slightly higher against the US dollar despite cautious investor sentiment ahead of crucial US economic indicators. Analyst Afzanizam Rashid from Bank Muamalat Malaysia Bhd noted that the US Dollar Index rose 0.03% to 99.883 points as traders anticipated the release of the US Institute for Supply Management's services index later in the day.

He mentioned that the ISM services index is projected to be 54.5 for July, building on the stronger-than-expected manufacturing index. Afzanizam emphasized that investors will closely monitor the US Nonfarm Payrolls report on Friday, with forecasts suggesting 88,000 new jobs in July, matching June's figure. Unemployment is expected to stay steady at 4.2%.

Market volatility has risen due to the newly appointed Federal Reserve Chair, Kevin Warsh, who has been less forthcoming about monetary policy. Without clear signals from the Fed, investors are increasingly relying on incoming data to guide their trading decisions, contributing to heightened uncertainty. By 6 pm, the ringgit rose to 4.0920/4.0960 against the greenback from its previous close of 4.0945/4.0985.

Its value against other major currencies fell, including against the Japanese yen, euro, British pound, Singapore dollar, Thai baht, Indonesian rupiah, and Philippine peso.