KUALA LUMPUR: The ringgit was slightly lower against the US dollar in the early session today on weaker demand and following economic data which showed a decline in Malaysia's manufacturing sector for May.
At 9.15 am, the local unit was quoted at 3.9740/9780 against the greenback from Monday's close 3.9700/9740.
FXTM Global Head of Currency Strategy & Market Research, Jameel Ahmad said the manufacturing sector had now suffered four consecutive months of contraction.
“News that new orders had fallen the most since late 2016, suggests that the sector could struggle for some time. It is a little bit too early to discuss whether the woes for the manufacturing sector will weigh down on gross domestic product potential.
“Investors will be waiting for the key trade balance report to be announced later today for guidance on how the economy has performed over the second quarter of 2018,” he said in a statement.
Meanwhile, the local unit traded higher against a basket of currencies.
It improved against the Singapore dollar to 2.9734/9782 from 2.9747/9781 yesterday and gained vis-a-vis the yen to 3.6157/6197 from 3.6213/6259.
The local unit improved against the British pound to 5.2890/2959 from 5.3146/3208 and appreciated against the euro at 4.6456/6507 from 4.6564/6619.