Ringgit opens easier against US dollar but firmer vs other major currencies

KUALA LUMPUR: The ringgit opened lower against the strengthening US dollar but rose versus other major currencies, said an economist.

At 9 am, the ringgit eased to 4.7190/7235 versus the greenback from Monday’s close of 4.7120/7155.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the elections in France and United Kingdom (UK) have apparently provided a boost to the US currency.

It was reported that the UK will hold its election on Thursday while France’s second round of parliamentary election will be held on July 7.

“While the US ISM Manufacturing Purchasing Managers Index fell to 48.5 points in June, which was lower than consensus estimates of 49.2 points, the US Dollar Index (DXY) continues to be well supported,” he told BK.

Additionally, he said, the US presidential election in November appears to be the main focus by the market in light of the presidential debate last Friday.

On that note, the ringgit would maintain its tight range against the greenback at around RM4.71 today, said Mohd Afzanizam.

Meanwhile, the ringgit was higher against a basket of major currencies.

The local currency appreciated against the Japanese yen to 2.9216/9246 from 2.9254/9278 at Monday’s close, increased vis-a-vis the British pound to 5.9653/9710 from 5.9706/9750 yesterday, and improved versus the euro to 5.0658/0707 from 5.0682/0720.

In contrast, the ringgit performed mixed against its ASEAN peers.

The local note rose against the Singapore dollar to 3.4750/4785 from 3.4772/4801 at yesterday’s close and firmed versus the Thai baht to 12.8300/8464 from 12.8329/8481 previously.

However, it slipped against the Philippine peso to 8.04/8.05 from 8.03/8.04 at Monday’s close and eased versus the Indonesian rupiah to 289.1/289.5 from 288.7/289.0. – BK