Ringgit opens higher against US dollar on stronger demand

KUALA LUMPUR, Oct 2 — The Malaysian ringgit opened stronger against the US dollar and other major currencies today, as demand for the local currency increased despite robust economic data from the United States. At 8am, the ringgit traded at 4.0820/0885 against the US dollar, improving from its previous close of 4.0830/4.0875. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid attributed this movement to the ISM Manufacturing PMI, which stood at 54.5 points in September, a slight improvement from the 54.6 points recorded the previous month.

Rashid noted that the 'New Orders' sub-index suggested a strong business environment, with activity accelerating from 53.7 points to 55.3 points. He also pointed out that initial jobless claims had fallen to 197,000 last week, while the four-week moving average declined to 200,000. Against major currencies, the ringgit increased against the euro to 4.5914/5987, against the British pound to 5.3870/3956, but weakened against the Japanese yen to 2.5844/5886.

In ASEAN markets, the ringgit weakened against the Singapore dollar to 3.1883/1936 and against the Thai baht to 12.1207/1515. The local currency remained steady against the Philippine peso at 6.50/6.51 and the Indonesian rupiah at 227.2/227.6.