Ringgit marginally higher against US$ in early session

KUALA LUMPUR: The ringgit opened marginally higher against the US dollar amid cautious sentiment as markets continue to digest important data points during the week, said an economist.

At 9 am, the ringgit traded firmer at 4.7140/7180 against the greenback versus last Friday’s close of 4.7160/7190.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said there will be a series of Purchasing Managers’ Index (PMI) indices which will influence business sentiments.

He said the US will be releasing its ISM Manufacturing Index for June 2024 later tonight, which has been languishing below the 50-point demarcation line for two consecutive months.

Beyond that, there will be Job Openings and Labour Turnover Survey (JOLTS) on Tuesday, ADP Employment change on Wednesday and the Nonfarm Payroll (NFP) on Friday.

“Today is the start of the second half of 2024 trading. We believe key events surrounding the elections in Europe (UK and France) as well as the US in November will have important bearings on market sentiments.

“Not to mention, the Federal Open Market Committee meeting which is scheduled on July 30-31 will be closely monitored for clues of possible monetary easing in the not too distant future,” he told BK.

Perhaps, the talk of possible rate cuts in the US will gain more steam in the second half of 2024, he said.

Meanwhile, the ringgit was mostly higher against a basket of major currencies in the early session.

The ringgit appreciated against the Japanese yen to 2.9274/9301 from 2.9345/9365 and gained against the British pound to 5.9632/9683 from 5.9639/9676 but declined against the euro to 5.0643/0685 from 5.0494/0526 at Friday’s close.

The ringgit was also mostly higher against its ASEAN peers.

The ringgit improved against the Singapore dollar to 3.4777/4809 from 3.4792/4816, strengthened against the Thai baht to 12.8307/8472 from 12.8508/8646 and it increased against the Indonesian rupiah to 287.8/288.2 from 287.9/288.3 previously.

However, the local note was flat against the Philippine peso to at 8.05/8.06. – BK