By Kisho Kumari Sucedaram
KUALA LUMPUR, July 2 (Bernama) -- The ringgit ended lower against the US dollar today despite weaker US economic data last night, which showed its manufacturing sector contracting for a third straight month, said an analyst.
At 6 pm, the ringgit traded at 4.7200/7225 against the greenback, compared with Monday’s close of 4.7120/7155.
The Institute for Supply Management’s (ISM) Purchasing Managers’ Index (PMI) for the US slipped to 48.5 points in June from 48.7 points in May, the third consecutive month below the 50-point demarcation line.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said ISM attributed that demand in the US had remained subdued as companies were unwilling to invest in capital and inventory owing to the restrictive monetary policy adopted by the US Federal Reserve.
“Despite that, the US Dollar Index (DXY) continues to march higher, reaching as high as 106.04 points before retreating to 105.99 points,” he told Bernama.
Meanwhile, the ringgit was higher against a basket of major currencies.
The local currency appreciated against the Japanese yen to 2.9195/9213 from 2.9254/9278 at Monday’s close, rose vis-a-vis the British pound to 5.9628/9659 from 5.9706/9750 and firmed versus the euro to 5.0556/0583 from 5.0682/0720.
The ringgit was also stronger against its ASEAN peers.
The local note was marginally higher against the Singapore dollar to 3.4737/4757 from 3.4772/4801 at yesterday’s close and rose to 12.8021/8141 against the Thai baht from 12.8329/8481 previously.
It also strengthened against the Philippine peso to 8.02/8.03 from 8.03/8.04 at Monday’s close and climbed versus the Indonesian rupiah to 287.8/288.1 from 288.7/289.0.
-- BERNAMA
