Ringgit opens higher against US dollar

Ringgit opens higher against US dollar
-A +A

KUALA LUMPUR (Sept 6): The ringgit was trading higher against the US dollar today, still on positive investors’ sentiment tracking Malaysia's Manufacturing Purchasing Managers’ Index (PMI), which climbed to 43.4 last month from 40.1 in July 2021.

The local note was continuing last week's trend, trading on an uptrend versus the greenback. On a weekly appreciation, the ringgit was higher by about 1.07% against the US dollar last Friday.

At 9am today, the local note had improved to 4.1410/1440 from 4.1445/1475 last Friday.

Adding to the sentiment was the weak US employment data released last Friday, automatically signalling the US Federal Reserve (Fed) to maintain the cost of borrowing the US dollars low while nurturing the economic recovery.

After the Fed, central banks in developing nations are also set to hold their policy meetings this week that will provide directions for traders.

In Malaysia, Bank Negara Malaysia (BNM) is expected to begin its two-day monetary policy meeting on Thursday.

Analysts highlighted that the central bank is likely to keep the overnight interest rate at 1.75%.

At the opening bell, the local note was traded mostly lower against a basket of major currencies.

It fell against the Singapore dollar to 3.0850/0877 from 3.0876/0903 last Friday, slipped versus the yen to 3.7707/7734 from 3.7705/7735 and eased vis-a-vis the British pound to 5.7369/7411 from 5.7352/7393.

Against the euro, however, the local currency improved to 4.9187/9222 from 4.9195/9231.