Ringgit opens lower on higher US manufacturing PMI

KUALA LUMPUR: The ringgit opened lower against the US dollar today as the greenback strengthened after the US Institute of Supply Management (ISM) Manufacturing Purchasing Managers Index (PMI) print accelerated to 56 from 54.2 in August. At 9.09 am, the local currency was quoted at 4.1490/1540 against the greenback from Tuesday’s close of 4.1400/1450. AxiCorp chief global market strategist Stephen Innes said a small pullback is expected as the greenback is a bit stronger but the bullish ringgit sentiment should remain intact amid rising oil prices and favourable Malaysian Government Securities (MGS) yield. "Demand for MGS bonds should hold up ahead of an expected Bank Negara Malaysia rate cut sooner than later while oil prices look stable and moving on the upside," he added Meanwhile, the ringgit was traded higher against other major currencies. It went up against the Singapore dollar to 3.0454/0508 from last Tuesday’s 3.0490/0539 and was higher against the yen at 3.9097/9152 from 3.9149/9207 yesterday. The ringgit appreciated against the British pound to 5.5476/5547 from 5.5671/5742 yesterday and rose against the euro to 4.9336/9412 from 4.9593/9665. - Bernama