KUALA LUMPUR, Malaysia (July 2): The ringgit fell for the fourth day in a row versus the US dollar this morning, according to a dealer, after a drop in Malaysia’s Manufacturing Purchasing Managers’ Index (PMI) and lower oil prices weighed on the currency. The local currency was trading at 4.1635/1660 against the US dollar at 9.02 a.m., down from 4.1575/1600 at yesterday’s close.
Reflecting stronger Covid-19 control efforts, the IHS Markit headline index fell rapidly to a near-series low of 39.9 in June 2021, down from 51.3 the previous month.
The US PMI for June, which was also lower-than-expected, sent mixed signals to the economy, according to ActivTrades trader Dyogenes Rodrigues Diniz.
“As long as the US PMI remains over 50, it is still positive, but it has recently shown some lowering readings, which is cause for concern if the next number continues to decrease.”
“Investors will also be watching the non-farm payroll data and unemployment rate, both of which are due out later today,” he added.
Meanwhile, the benchmark Brent crude oil price had fallen 0.15 percent to US$75.73 (roughly RM315.49) per barrel at the time of writing.
The ringgit was largely trading down versus a basket of major currencies at the start of the day.
It depreciated against the British pound, falling to 5.7290/7324 from 5.7257/7292 at yesterday’s close, weakened against the euro, falling to 4.9304/9334 from 4.9271/9300, and declined against the Japanese yen, falling to 3.7297/7320 from 3.7280/7303.
However, the local currency improved marginally against the Singapore dollar, rising to 3.0836/0857 from 3.0869/0890 yesterday./n
