The ringgit depreciated against the US dollar at the end of the transaction

KUALA LUMPUR: The value of the ringgit fell against the United States (US) dollar at the close of trading on Tuesday despite the developed country’s weak economic data, as shown by the contraction of its production sector for three consecutive months, analysts said.

Bernama reports, at 6pm, the ringgit traded at 4.7200/7225 compared to the US dollar from 4.7120/7155 recorded yesterday.

The US Institute of Supply Management’s (ISM) Purchasing Managers’ Index (IPP) fell to 48.5 points in June from 48.7 points in May, the third consecutive month below the 50-point mark.

Commenting on the matter, Bank Muamalat Malaysia Bhd’s Chief Economist, Dr Mohd Afzanizam Abdul Rashid, said ISM shows that demand in the US remains bleak as companies are still not ready to make capital investment and inventory following the tighter monetary policy implemented by the Federal Reserve (Fed ) US.

“However, the US Dollar Index (DXY) continued to rise and reached a level of 106.04 points before being at a level of 105.99 points,” he said.

Meanwhile, the ringgit strengthened against other major currencies, including rising against the Japanese yen to 2.9195/9213 from 2.9254/9278 yesterday.

The ringgit also rose against the British pound to 5.9628/9659 from 5.9706/9750 and strengthened against the euro to 5.0556/0583 from 5.0682/0720.

In addition, the ringgit’s performance improved against regional currencies in ASEAN.

This included a rise against the Singapore dollar to 3.4737/4757 from 3.4772/4801 at the close of trade yesterday and an increase against the Thai baht to 12.8021/8141 from 12.8329/8481.

The ringgit also strengthened against the Philippine peso to 8.02/8.03 from 8.03/8.04 previously and rose against the Indonesian rupiah to 287.8/288.1 from 288.7/289.0.