Ringgit opens higher against US$ ahead of key US economic data
The Malaysian ringgit strengthened against the US dollar as markets reacted to geopolitical developments in West Asia and anticipated US economic data. Analysts noted that reduced tensions regarding potential military strikes influenced currency fluctuations.
Why it matters
Currency market volatility impacts international trade and investment, particularly in emerging markets sensitive to US economic policy and global conflict.
KUALA LUMPUR: The ringgit opened slightly higher against the US dollar on Monday ahead of the release of key United States (US) economic data today amid easing tensions in West Asia.
At 8 am, the local currency edged up to 4.0805/0900 against the greenback from last Friday’s close of 4.0835/0875.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Institute for Supply Management (ISM) Manufacturing PMI for July will be released tonight, with the consensus estimate at 54.0, which is higher than June's reading of 53.3.
"Additionally, uncertainties over the West Asia conflict also weighed on market sentiment, with Brent crude oil rising 4.59 per cent to US$88.10 per barrel.
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