Ringgit rises as greenback wavers on political risk

As at 9.26 am(0123 gmt), the local unit was quoted at 3.9250/9280 against the US dollar from 3.9220/9250 recorded at the close on Monday.

KUALA LUMPUR: The ringgit was slightly higher against the US dollar in the early session as investors' interest shifted away from the greenback due to uncertainty over potential political risks, dealers said.

At 9.09 am, the local unit was quoted at 3.9750/9800 against the US dollar from Friday's close of 3.9770/9800.

A dealer said traders were cautious on the US dollar and the uncertainty over the United States-North Korea summit next week, which will continue to cap the greenback's upside, that they looked past the decline in Malaysia's manufacturing sector.

“According to a survey from Nikkei, Malaysia Manufacturing Purchasing Managers' Index fell to 47.6 in May from 48.6 in April,” he added.

Meanwhile, the local unit was traded mostly higher against a basket of currencies, except against the British pound, where it fell to 5.3114/3201 from 5.2902/2946 recorded last Friday.

The ringgit appreciated against the euro to 4.6400/6474 from 4.6551/6594, it improved against the Singapore dollar to 2.9706/9746 versus 2.9728/9761 and gained vis-a-vis the yen to 3.6235/6284 from 3.6393/6430 last Friday. - Bernama