RM slips further against USD to open at 4.16

KUALA LUMPUR: The ringgit opened lower for the fourth consecutive day against the US dollar this morning after a decline in Malaysia’s Manufacturing Purchasing Managers’ Index (PMI) coupled with lower oil prices weighed on the currency, a dealer said.

At 9.02am, the local note fell to 4.1635/1660 versus the US dollar from 4.1575/1600 at Thursday’s close.

The IHS Markit headline index dropped sharply to a near series low of 39.9 in June 2021 from 51.3 in the previous month, reflecting the stricter COVID-19 containment measures.

ActivTrades trader Dyogenes Rodrigues Diniz said the US PMI for June, which also showed a lower-than-expected number, however sent mixed signals to the economy.

“As the US PMI remains above 50, it is still bullish, but recently it has been showing some decreasing readings, something to worry about if the next readings keep falling.

“Investors will also pay close attention to the non-farm payroll data and the unemployment rate, both scheduled to be released later today,” he said.

Meanwhile, at the time of writing, the benchmark Brent crude oil price dropped 0.15 per cent to US$75.73 per barrel.

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

It fell against the British pound to 5.7290/7324 from 5.7257/7292 at Thursday’s close, weakened vis-a-vis the euro to 4.9304/9334 from 4.9271/9300, and depreciated against the Japanese yen to 3.7297/7320 from 3.7280/7303 previously.

The local unit, however, marginally improved against the Singapore dollar to 3.0836/0857 from 3.0869/0890 yesterday.– BERNAMA

Source: NST