KUALA LUMPUR, May 2 — The ringgit opened marginally higher against the greenback today, trading with a wider spread amid lingering uncertainty over global tariffs and weak US economic data, an economist said.
At 8 am, the local currency inched up to 4.3115/3310 versus the greenback from Wednesday’s close of 4.3130/3185.
The market was closed yesterday for the Labour Day public holiday.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the US Institute for Supply Management (ISM) manufacturing index fell to 48.7 points in April, down from 49.0 in the previous month, as businesses contended with the impact of tariffs.
“The ISM survey respondents suggest anxiety and confusion over tariff rulings are widespread, as these could significantly affect operating costs and supply chains,” he told Bernama.
He added that continuing claims for US unemployment benefits rose to 1.92 million for the week ending April 19, from 1.83 million a week earlier — the highest level since Nov 13, 2011 — indicating a weakening labour market.
“It will be interesting to see how this affects emerging market currencies. The US dollar index (DXY) has been lethargic amidst the uncertainty.
“Meanwhile, Asian currencies have performed well despite the tariff shocks. On that note, the ringgit may remain in a tight range of RM4.31 to RM4.32, as profit-taking could set in,” Mohd Afzanizam said.
The ringgit also traded higher against a basket of major currencies.
It rose versus the Japanese yen to 2.9663/9799 from 3.0142/0182 at Wednesday’s close, strengthened against the euro to 4.8711/8932 from 4.9009/9071, and firmed against the British pound to 5.7296/7555 from 5.7626/7699.
However, the local note was mixed against its Asean peers.
It gained against the Singapore dollar to 3.2892/3046 from 3.3027/3074, and rose against the Thai baht to 12.8529/9230 from 12.9066/9304.
In contrast, the ringgit was flat against the Philippine peso at 7.72/7.76 from 7.72/7.73, and eased against the Indonesian rupiah to 260.0/261.3 from 257.9/258.4.
— Bernama
