The US manufacturing PMI is due tonight and is expected to edge up from June, says analyst.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the US Institute for Supply Management Manufacturing PMI for July will be released tonight, with the consensus estimate at 54.0, which is higher than June’s reading of 53.3.
“Additionally, uncertainties over the West Asia conflict also weighed on market sentiment, with Brent crude oil rising 4.59% to US$88.10 per barrel.
“President Donald Trump reportedly said over the weekend that he has cancelled the planned military strikes against Iran as both countries are expected to reach a deal on the nuclear programme and the full reopening of the Strait of Hormuz,” he told Bernama.
However, Afzanizam said the market remains cautious; thus, the local note is expected to trade within a narrow range of RM4.07 to RM4.09 today.
Meanwhile, SPI Asset Management managing partner Stephen Innes said the US dollar weakened after Trump cancelled the planned strike on Iran over the weekend.
He said the decision has sent oil prices and inflation breakevens lower, pulling down the US interest-rate curve.
“That combination should be supportive for the ringgit and, more broadly, for risk assets across Asia today,” he added.
The ringgit traded lower against a basket of major currencies at the opening.
At 8am, the local currency edged up to 4.0805/4.0900 against the greenback from last Friday’s close of 4.0835/4.0875.
It slipped against the Japanese yen to 2.5880/2.5942 from 2.5520/2.5548 at last Friday’s close, fell versus the euro to 4.7089/4.7199 from 4.6981/4.7027 and depreciated against the British pound to 5.5038/5.5166 from 5.4923/5.4977.
Against regional currencies, the ringgit traded mixed.
It gained against the Indonesian rupiah to 226.4/227.0 from 226.6/226.8 and rose versus the Thai baht to 12.2211/12.2558 from 12.2264/12.2435.
However, it softened against the Singapore dollar to 3.1844/3.1921 from 3.1823/3.1856 and was little changed versus the Philippine peso to 6.66/6.68 from 6.66/6.67. - FMT
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