Ringgit Opens Easier As Strong US Data Supports Dollar

By Harizah Hanim Mohamed

KUALA LUMPUR, June 24 (Bernama) -- The ringgit opened easier against the US dollar this morning and is expected to remain range-bound ahead of the United States' Personal Consumption Expenditures (PCE) inflation report due on Thursday.

At 8 am, the local currency weakened to 4.1450/1505 against the greenback from 4.1380/1430 at Tuesday's close.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US dollar remained supported by stronger-than-expected economic data.

"The hawkish stance of US Federal Reserve officials continues to dominate currency markets, as recent data suggest the US economy remains fairly resilient despite higher fuel prices.

"The US Purchasing Managers' Index readings for the manufacturing and services sectors came in above expectations in June, at 55.7 points (consensus: 54.6) and 51.3 points (consensus: 51.1), respectively," he told Bernama.

At the opening, the ringgit was mostly lower against a basket of major and regional currencies.

It declined against the British pound to 5.4887/4973 from 5.4750/4816 at Tuesday's close, slipped versus the euro to 4.7345/7419 from 4.7223/7280 previously, and eased against the Japanese yen to 2.5648/5690 from 2.5638/5669.

The local note also traded lower against most regional currencies.

It depreciated against the Singapore dollar to 3.2030/2085 from 3.1959/2000 at Tuesday's close and weakened versus the Thai baht to 12.5637/5899 from 12.4845/5053 previously.

The ringgit fell against the Indonesian rupiah to 232.2/232.7 from 231.6/232.0 at yesterday's close but strengthened against the Philippine peso to 6.78/6.79 from 6.74/6.75 previously.

-- BERNAMA