Ringgit Opened Higher, Stronger Against the US Dollar

<p>&nbsp;Today, the ringgit traded higher against the US dollar during the market opening despite the Purchasing Managers' Index (PMI) data released by the US and the European Union (EU) being somewhat mixed.</p><p><br /></p><p>At exactly 9.05 this morning, the ringgit rose to 4.6775 compared to the closing price of the US dollar last Friday which was 4.6830.</p><p><br /></p><p>According to Dr. Afzanizam Abdul Rashid, Head of Economics and Social Finance of Muamalat Bank stated that the EU Composite PMI was higher in November 2023, up 47.1 points compared to 46.5 points previously.</p><p><br /></p><p>In the United States, the PMI remained at 50.7 points in November 2023 supported by an increase in the service sector and the manufacturing sector.</p><p><br /></p><p>He said that, although the index seems to be improving, most surveys show that firms are reducing the number of their employees to minimize the overhead problem.</p><p><br /></p><p><br /></p><p>For Malaysia, the latest Consumer Price Index (CPI) moderated to 1.8% year-on-year showing that the real interest rate has increased from only 0.2% in May 2023 to 1.2% in October 2023.</p><p><br /></p><p>Indirectly, monetary policy has gradually become more constrained and it is still a puzzle whether the increase in the Overnight Policy Rate (OPR) will continue.</p><p><br /></p><p>The ringgit weakened against the euro to 5.1108, the British pound to 5.8893 and the Japanese yen to 3.1297.</p><p><br /></p><p>Compared to other ASEAN currencies, the ringgit traded mixed where it remained unchanged against the Indonesian rupiah at 300.3. Meanwhile, it is slightly higher than the Philippine peso at 8.44.</p><p><br /></p><p>However, it depreciated against the Singapore dollar to 3.4907 and also the Thai baht to 13.1949.</p>