KUALA LUMPUR: The ringgit opened slightly stronger against the US dollar amid cautious sentiment as markets continue to digest key data points during the week, an economist said.
The ringgit was trading firmer at 4.7140/7180 against the US dollar at 9am, compared to Friday’s close of 4.7160/7190.
Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, said there will be a series of Purchasing Managers’ Index (PMIs) that will influence business sentiments.
Furthermore, he said the United States would release its June 2024 ISM manufacturing index on Monday, which has remained below 50 points for two consecutive months.
There will also be the Job Openings and Labor Turnover Survey (JOLTS) on Tuesday, ADP Job Change on Wednesday, and Nonfarm Payrolls (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,” he told Bernama.
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“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 added.
Perhaps discussions about possible US interest rate cuts will gain momentum in the second half of 2024, he said.
Meanwhile, the ringgit rose broadly against a basket of major currencies in early trade.
The Malaysian currency appreciated against the Japanese yen to 2.9274/9301 from 2.9345/9365 and strengthened against the British pound to 5.9632/9683 from 5.9639/9676, but fell against the euro to 5.0643 /0685 vs. 5.0494/0526 at Friday’s close.
The ringgit was also quite positive against its ASEAN counterparts.
It rose against the Singapore dollar to 3.4777/4809 from 3.4792/4816, against the Thai baht to 12.8307/8472 from 12.8508/8646 and was up against the Indonesian rupiah from 287.9/288. 3 to 287.8/288.2. However, the local currency remained unchanged against the Philippine peso at 8.05/8.06.
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