KUALA LUMPUR, Sept 4 — The ringgit closed higher against the US dollar today following weaker-than-expected Institute of Supply Management’s (ISM) August factory index for the United States.
At 6pm, the local note was quoted at 4.2020/2050 against the greenback from 4.2200/2250 on Tuesday.
The ISM US Manufacturing Purchasing Managers’ Index (PMI) for August came in at 49.1, the lowest reading in more than three years.
Axi Trader Asia-Pacific market strategist Stephen Innes said the renminbi recovered from its weakest since 2008 as the US dollar pulled back, up almost 0.2 per cent at 7.15 per dollar.
“This helped the ringgit strengthen to 4.20 level against the US dollar at the close,” he told Bernama.
Malaysia recorded a trade surplus in July 2019 amounting to RM14.27 billion, up 75.6 per cent from the same month of the previous year.
The International Trade and Industry Ministry, in a statement, said exports picked up 1.7 per cent year-on-year (y-o-y) to RM87.96 billion, mainly due to higher exports to Taiwan, the United States, China and Singapore, while imports shrank 5.9 per cent to RM73.69 billion.
“The trade surplus has expanded, defying the regional negative trends, which also buttressed sentiment for the ringgit,” Innes said.
At the close, the ringgit traded mostly lower against a basket of major currencies.
It fell against the British pound to 5.1214/1267 from yesterday’s close of 5.0585/0658, slipped against the euro to 4.6306/6343 from 4.6167/6238, and eased against the Singapore dollar to 3.0311/0341 from 3.0283/0328.
However, the ringgit ended higher against the yen at 3.9556/9588 from 3.9793/9851 on Tuesday. — Bernama
