Ringgit opens weaker against US dollar

KUALA LUMPUR: The ringgit opens weaker against the US dollar today after publication of disappointing US economic data yesterday, this casts doubt on America’s growth momentum, said a dealer.

At 9.15am, the local note was quoted at 4.1500/1530 versus the US dollar against 4.1410/1440 yesterday.

A dealer said the Producer Price Index (PPI) delivered disappointing performance amid a widening contraction in September as compared to August, dashing hopes that the PPI could be on track for a sustained recovery.

“Deeper contraction in mining, down 14.4% year-on-year and the lowest for this year, is worrying as this may take a toll on exports and growth as the industry represents about 7% of the economy,” he said.

September PPI for local production fell 2.4% from the same month last year and down 1.9% from August.

The local note was also traded lower against other major currencies.

The ringgit decreased against the Singapore dollar to 3.0461/0501 from yesterday’s close of 3.0415/0448 and depreciated against the yen to 3.8098/8132 from 3.7932/7966.

It eased against the British pound to 5.3352/3399 from 5.3158/3213 and declined versus the euro to 4.5700/5737 from 4.5679/5729.