KUALA LUMPUR, June 6 — The ringgit was slightly higher against the US dollar at the close on Thursday as market movements are being influenced by investor sentiment regarding a potential interest rate cut next week.
At 6pm, the ringgit improved to 4.6935/6965 against the greenback from 4.6970/6985 at yesterday’s close.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the ringgit staged a further recovery as major central banks like the Bank of Canada were seen to have lowered their benchmark interest rate for the first time in more than four years.
“Eventually, the US Federal Reserve will follow in similar footsteps to cut its interest rate, hence boosting the ringgit,” he told Bernama.
The local currency was also well supported following the May PMI data, which indicated the first expansion since August 2022.
This suggests that the manufacturing sector is poised for positive growth in 2024, supported by favourable global semiconductor market projections.
The seasonally adjusted S&P Global Malaysia manufacturing PMI rose to 50.2 in May 2024 from 49.0 in April 2024, the first expansion since August 2022.
At the close, the ringgit traded mostly higher against a basket of major currencies.
The local unit was marginally higher versus the Japanese yen to 3.0094/0113 from 3.0099/0111 and strengthened vis-à-vis the British pound to 5.9997/6.0035 from 6.004/0023 previously.
However, it is almost flat against the euro at 5.1065/1098 from 5.1070/1087 at Wednesday’s close.
Meanwhile, the ringgit was traded mixed against its Asean peers.
It declined against the Thai baht to 12.8660/8798 from 12.7994/8091 at yesterday’s close and slipped versus the Philippine peso to 8.01/8.02 from 7.99/7.99, increased versus the Singapore dollar to 3.4842/4866 from 3.4857/4871, while was flat vis-à-vis the Indonesian rupiah at 288.6/288.8 from 288.3/288.6
— Bernama
