KUALA LUMPUR, Jul 4 – The ringgit closed marginally higher against the US dollar today on firm demand for the local note, said a dealer. At 6pm, the local note was traded at 4.2960/2990 from 4.2965/2995 against the greenback on Monday. OANDA Senior Trader, Stephen Innes, said despite firmer buying appetite on the back of firmer oil prices earlier today, the ringgit was mostly traded in a quiet tone.
“However, risk has taken a blow in follow-up headlines to a reported North Korea missile launch, where they (North Korea) will make an announcement today, according to Yonhap agency. This could be detrimental to regional sentiment and a clear militaristic escalation,” Innes told Bernama.
Meanwhile, Vice President of Corporate Development and Market Research at FXTM, Jameel Ahmad, said the ringgit has experienced a quieter start to the trading week, which was something that has been noticed across the emerging assets with the US markets being closed for Independence Day.
“There was an unexpected miss for the domestic economy when Malaysia’s Nikkei Manufacturing Purchasing Manager’s Index for June hit its lowest in five years since data for the index was first tracked in the country, falling to 46.9 from 48.7 in May, on lower output and a decline in new orders, raising concerns that the country’s manufacturing sector may deteriorate in the coming months. Trade balance report scheduled for the conclusion of the week will be seen as the most important economic announcement for the local economy,” said Jameel.
At the close, the ringgit was traded higher against other major currencies. It rose against the Singapore dollar to 3.1065/1098 from 3.1107/1131 on Monday and appreciated against the British pound to 5.5539/5582 from 5.5738/5790 yesterday. The local note advanced against the yen to 3.7951/7980 from 3.8049/8082 and improved against the euro to 4.8760/8798 from 4.8860/8903 on Monday. — Bernama
