KUALA LUMPUR – The ringgit opened marginally lower against the US dollar due to the lack of demand for the local note after US business output climbed in October.
The S&P Global Manufacturing Purchasing Managers’ Index (PMI) has rose to 50 in October 2023, an improvement from September’s 49.8.
At 9am, the ringgit inched down to 4.7850/7910 against the greenback from yesterday’s close of 4.7825/7865.
Bank Muamalat Malaysia Bhd chief economist and social finance head Mohd Afzanizam Abdul Rashid said the greenback also strengthened today, influenced by the higher performance of US Dollar Index (DXY) after increasing by 0.7% to 106.27 points.
However, he noted the concern over the geopolitical tension in the Middle East which is still fragile although humanitarian aid is flowing.
“Concern over whether the conflict may escalate will continue to affect market sentiments and how it may impact crude oil prices which could fan further inflation,” he said.
Hence, he said the USD/MYR could remain in a tight range after recording an appreciation to RM4.7825 yesterday.
In early trade, the ringgit strengthened versus a basket of major currencies.
It increased against the euro to 5.0688/0751 from 5.0881/0924 at the close yesterday, gained versus the British pound to 5.8210/8283 from 5.8557/8606 yesterday, and edged up against the Japanese yen to 3.1923/1966 from 3.1960/1989 previously.
Meanwhile, the local note was traded mostly lower against other Asian currencies.
The ringgit decreased against the Indonesian rupiah to 301.8/302.4 from 301.7/302.1 at yesterday’s close, inched down versus the Philippine peso to 8.43/8.45 from 8.42/8.43 and declined against the Thai baht to 13.2460/2678 from 13.2186/2352 previously.
In contrast, it was higher vis-a-vis the Singapore dollar to 3.4999/5045 from 3.5003/5035 yesterday. – Bernama, October 25, 2023
