Ringgit strengthens on weak US data

The Malaysia — Malaysian ringgit opened slightly higher against the US dollar on consecutive days, supported by weaker-than-expected US economic data that weighed on the greenback. On August 5, the ringgit edged up to 4.0940/0995 from the previous close of 4.0945/0985, following the release of the US Job Openings and Labour Turnover Survey (JOLTS) showing job openings fell to 7.36 million in June from 7.54 million in May. On August 6, the ringgit strengthened further to 4.0905/0960 from 4.0920/0960, as the ADP Nonfarm Employment Change came in at 44,000 in July, below the consensus estimate of 68,000, and the ISM non-manufacturing index stood at 54.1, below the consensus of 54.5. The US Dollar Index slipped to 99.676. United States — Federal Reserve Governor Lisa Cook indicated she would support an interest rate hike if inflation remained persistently high, while the potential reopening of the Strait of Hormuz kept Brent Crude prices below US$80 per barrel. The ringgit traded mixed against other major and regional currencies. Analysts expect the ringgit to trade within a range of RM4.07 to RM4.10, with gains capped ahead of the US non-farm payrolls report.