KUALA LUMPUR: The ringgit opened slightly lower against the US dollar on Wednesday as better-than-expected United States (US) economic data and uncertainty in West Asia kept the greenback ticking higher.
At 8 am, the local currency slipped to 3.9680/9725 against the greenback from last Friday's close of 3.9625/9670.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit showed some weakness as trading resumed after a two-day break for the King's Birthday and Wesak Day holidays.
"The US Dollar Index remained well supported as business sentiment improved in the US, with the manufacturing sector index rising to 54.0 points in May from 52.7 points in April, while job openings stood at 7.62 million in April, exceeding consensus estimates of 6.86 million.
"This suggests that the US economy remains resilient despite elevated fuel prices, which could mean that the US Federal Reserve may not be inclined to cut interest rates,” Mohd Afzanizam told Bernama.
He noted that while the key US economic data supported the greenback, concerns over the potential closure of the Strait of Hormuz, which could impact the global economy, continued to weigh on market sentiment.
"As such, the ringgit is expected to trade sideways as investors remain cautious,” he added.
Back home, the ringgit traded higher against a basket of major currencies.
It appreciated against the British pound to 5.3378/3438 from 5.3447/3527 at last Friday’s close, strengthened against the euro to 4.6112/6164 from 4.6323/6392, and rose versus the Japanese yen to 2.4802/4831 from last Friday's 2.4961/5000.
At the same time, the local currency traded mostly higher against regional peers.
The local note was higher versus the Singapore dollar to 3.0990/1028 from 3.1151/1201 previously, and improved against the Thai baht to 12.1346/1546 from 12.2083/2338 last Friday.
It was little changed against the Indonesian rupiah at 222.4/222.7 versus 222.7/223.2 previously and was marginally higher vis-a-vis the Philippine peso at 6.43/6.44 compared with 6.45/6.46. - Bernama
