Ringgit ends higher against US dollar

KUALA LUMPUR: The ringgit ended higher against the US dollar as weaker manufacturing purchasing managers index (PMI) flash estimates raised hopes for a dovish interest rate signal by major economies, especially the United States.

A rising yuan due to a stronger-than-expected daily mid-point fix by China’s central bank also helped support the ringgit.

At 6 pm, the local note rose to 4.6435/6485 against the greenback from 4.6575/6610 at yesterday’s close.

The latest manufacturing PMI prints for the US, Europe and the UK remained below the 50-point demarcation line at 47.0, 43.7 and 42.7 points, respectively.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the ringgit remained in a tight range as markets appeared indecisive in the near term. He reckons that the flash estimates of manufacturing PMI print for developed economies indicated that business sentiments were persistently weak.

“As such, the markets are wondering about global central banks’ resolve to suppress inflation via monetary tightening at the expense of growth.

“Therefore, the US Federal Reserve (Fed) chairman Jerome Powell’s speech during the Jackson Hole symposium on Friday will be closely scrutinised by market participants,” he told BK.

At home, the ringgit was traded mostly higher against a basket of major currencies.

It rose against the British pound to 5.8829/8892 from 5.8880/8924 on Wednesday and inched up vis-a-vis the Japanese yen to 3.1932/1968 from 3.2026/2052.

However, it slid against the euro to 5.0373/0427 from 5.0348/0385 previously.

The local note was mostly higher against other Asean currencies.

It gained against the Singapore dollar to 3.4292/4332 from 3.4309/4340 on Wednesday and appreciated against the Thai baht to 13.2645/2848 from 13.2813/2970 previously.

It climbed vis-a-vis the Philippine peso to 8.17/8.19 from 8.21/8.22 but slipped against the Indonesian rupiah to 304.5/305.0 from 304.4/304.8 previously. – BK