The ringgit opened higher against the US dollar today to continue a 10-day strong rally as investors anticipate a possible interest rate cut by the Federal Reserve (Fed) at its September meeting.
At 10.40am, the ringgit was up 0.42% to 4.5480 against the US dollar from 4.5675 at the close of trading on Thursday.
Bank Muamalat Malaysia Bhd's Chief Economist, Dr Mohd Afzanizam Abdul Rashid said the United States (US) Institute of Supply Management (ISM) index for the manufacturing sector declined to 46.8 points in July, which was lower than the consensus estimate of 48.8 points.
He also said that respondents to the ISM survey showed that consumer demand is slowing and some businesses are focusing on reducing their inventory.
Claims for unemployment insurance in the US also rose to 249,000 last week from 235,000 previously, signaling a weak labor market.
After the ringgit recorded a sharp rise against the US dollar, it is expected to continue its rise to reach its highest recovery level this year.
However, the urge among investors to save profits will cause a correction in the ringgit in the near future.
Meanwhile, the local currency traded mostly lower against a group of major currencies and mostly higher against Asean currencies.
The ringgit rose against the pound to 5.8088/8190 from 5.8272/8317 on Thursday, however weakened against the euro to 4.9233/9319 from 4.9229/9266 and eased against the Japanese yen to 3.0597/0655 from 3.0450/0475 yesterday.
Among Asean currencies, the ringgit rose against the Indonesian rupiah to 281.0/281.7 from 281.2/281.6 on Thursday and rose against the Philippine peso to 7.82/7.84 from 7.83/7.84.
The local currency rose against the Thai baht to 12.8216/8513 from 12.8239/8384 previously, but was lower against the Singapore dollar to 3.4145/4207 from 3.4124/4153 yesterday