Ringgit Opened Higher Compared to USD, US Inflation Is Getting 'Mild'


The ringgit opened positive against the US dollar at the opening of the week following US inflation data starting to conform to market targets and giving the local currency an edge.

At exactly 10 am, the ringgit strengthened at 4.6900 against the USD from its close on Friday at 4.7050.

Bank Muamalat Malaysia Bhd Chief Economist, Dr Afzanizam said the ISM Index report in the manufacturing sector fell below the 50 point level and equaled the position for the second consecutive month at 48.7 points in May.

The fall pushed US Treasury yields lower with two- and 10-year note yields at 4.81% and 4.39%, respectively.

He said, this will increase the expectation of interest rate cuts at the Federal Open Market Committee (FOMC) meeting on June 11 and 12 and provide good support for the ringgit currency.

Meanwhile, the ringgit is trading low compared to the world's major currencies.

The local unit fell against the euro to 5.1134/1210 from 5.1035/1068 at Friday's close, eased against the British pound to 6.0037/0127 from 5.9876/9914 and depreciated against the Japanese yen to 2.9962/3.0008 from 2.9901/9922.

In addition, the ringgit is mixed compared to other Asean regional peers.

It eased against the Thai baht to 12.8071/8322 from 12.7860/7994 at Friday's close and fell against the Singapore dollar to 3.4817/4871 from 3.4803/4828.

However, the local unit appreciated against the Indonesian rupiah to 288.6/289.2 from 289.4/289.7 previously and rose against the Philippine peso to 7.98/8.01 from 8.03/8.05.