Ringgit Difficult to Consistency, Depreciates Again Following Latest PMI Data


The ringgit bounced back in early trade on Wednesday even as the US dollar eased after somewhat disappointing S&P Purchasing Managers' Index data.

At exactly 9.05 this morning, the ringgit strengthened to a position of 4.7730 against the US dollar from yesterday's close of around 4.7780.

According to Bank Muamalat Malaysia Bhd's Chief Economist, Afzanizam Rashid said the US Dollar Index (DXY) fell from 106,077 points to 105,675 points last night when data on US manufacturing and services sentiment fell in April.

The PMI index for the US manufacturing and services sectors fell to 49.9 from 51.9 and 50.9 from 51.7 in March respectively.

The US manufacturing PMI has slipped below the 50-point demarcation line for the first time since January this year after it remained above 50 points for three consecutive months.

He also said that the ringgit should show a favorable performance following the weakening of the US dollar. Next focus is on US Gross Domestic Product (GDP) in the first quarter and March Personal Consumption Expenditure (PCE) data to gauge future markets.

Meanwhile, the ringgit traded mostly lower against a group of major currencies.

The local unit rose against the Japanese yen to 3.0829/3.0864 from 3.0863/3.0887 at Tuesday's close, but depreciated against the British pound to 5.9457/5.9520 from 5.9067/5.9110 and against the Euro to 5. previously.

It is also traded mostly easier than Asean currencies.

The local currency fell against the Thai baht to 12.9364/12.9545 from 12.8887/12.9037 from yesterday's close, against the Singapore dollar to 3.5083/3.5122 from 3.5066/3.5095, and lower against the Philippine peso at .83.832/83.

It improved against the Indonesian rupiah to 294.2/294.7 from 294.5/294.9 previously.