THE ringgit traded higher against the US dollar at the opening today amid mixed data coming from the United States and European Union Purchasing Managers’ Index (PMI) indices. 

At 9.05am, the ringgit rose to 4.6775/6795 versus the greenback compared with last Friday’s close of 4.6830/6875.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the EU’s Composite PMI was higher during November 2023, chalking up 47.1 points from 46.5 points previously. 

In the US, the PMI was sustained at 50.7 points this month underpinned by improvement in the services sector while the manufacturing sector took a backseat. 

“While the index may seem to be improving, most of the surveys indicated that firms are cutting down their headcount in order to minimise overhead cost,” he told Bernama. 

As for Malaysia, Afzanizam said the latest Consumer Price Index moderated to 1.8% year-on-year suggesting that the real rate of interest has gone up from merely 0.2% in May to 1.2% last month.

Therefore, the monetary policy has become gradually restrictive, implying further overnight policy rate hike is unwarranted, he said. 

“In view of this, the ringgit against US dollar could range from RM4.67 to RM4.69 today,” he said. 

In the early trade, the ringgit was lower versus a basket of major currencies.

It depreciated against the euro at 5.1108/1152 from 5.1059/1108 last Friday, fell vis-a-vis the British pound to 5.8893/8943 from 5.8767/8823 and was lower marginally versus the Japanese yen to 3.1297/1326 from 3.1295/1327 previously. 

The local note traded mixed against other Asean currencies.

It was flat vis-a-vis the Indonesian rupiah at 300.3/300.7 from 300.8/301.3 and slightly higher against the Philippine peso to 8.44/8.45 from 8.45/8.46 during Friday’s close. 

However, the ringgit inched down against the Singapore dollar to 3.4907/4940 from 3.4903/4940 and declined versus the Thai baht at 13.2357/2534 from 13.1949/2139. – Bernama, November 27, 2023.