The ringgit opened slightly higher against the US dollar on Tuesday after the release of the United States (US) ISM manufacturing purchasing managers’ index (PMI) which came in lower than expected at 46.0 points in June, said an economist.
At 9 am, the local unit rose marginally to 4.6635/6670 versus the greenback compared to 4.6640/6690 at Monday’s close.
Bank Muamalat Malaysia Bhd chief economist and social finance head Dr Mohd Afzanizam Abdul Rashid said the ringgit is well supported as the data indicate that the Federal Reserve may not be so hawkish although it may be inclined to maintain higher for longer narratives to clamp down inflation.
“US manufacturing continues to exhibit further weaknesses in June. The index has been below the 50-point demarcation line for eight months in a row since November last year, indicating that manufacturers had become pessimistic in the first half of 2023.
Source : NST