Ringgit Inches Up Amid Weak US Data, But Mixed Against Other Currencies
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) fell by 0.44% to 98.787 points following weaker-than-expected economic indicators.
He noted that the US Institute for Supply Management (ISM) Index for the services sector dipped below the critical 50-point line to 49.9 in May, against a market consensus of 52.0 points.
'Based on the survey response by the ISM, import tariff was the major source of uncertainties among businesses as it has raised the raw material prices, and some suppliers are holding back inventory given the tariff uncertainties.
'This may lead to stronger emerging market currencies, including as the traders and investors would be reassessing the strength of the US economy, and therefore, Friday's Nonfarm Payroll will be another important barometer to look at,' he told local media.
He also pointed out that the upcoming Federal Open Market Committee (FOMC) meeting on 16-17 June will be a key moment, with the US Federal Reserve expected to release its macroeconomic outlook for the next three years.
At 8am, the ringgit strengthened marginally to 4.2410/2495 against the US dollar, compared to Wednesday's close of 4.2435/2490.
Despite the slight uptick against the greenback, the local note weakened against several major currencies.
It slipped against the Japanese yen to 2.9705/9767 from 2.9444/9486, the euro to 4.8428/8525 from 4.8300/8362, and the British pound to 5.7466/7581 from 5.7427/7502.
The ringgit also traded lower against several ASEAN currencies.
It was unchanged against the Philippine peso at 7.60/7.62.
However, it declined against the Singapore dollar to 3.2973/3040 from 3.2906/2951, the Thai baht to 13.0132/0493 from 12.9679/9911, and eased against the Indonesian rupiah to 260.2/260.8 from 260.4/260.8. Related
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