Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the US ISM Manufacturing Index, which fell to 48.7 points in October from 49.1 in September, offered a glimpse into the US economy.

“The index has remained below the 50-point demarcation line since March this year, and this suggests that the US tariff has resulted in higher input costs, leading to weak sentiments among the manufacturers,” he told Bernama.

Afzanizam also noted that views on a rate cut in December remain divided among Fed members, as some believe interest rates should be kept steady to contain the risk of higher inflation.

“Thus far, the ringgit has been fluctuating within the current range, with the RM4.2000 level (against the US dollar) appearing to be a psychological hurdle.

“The upcoming Bank Negara Malaysia monetary policy committee (MPC) decision could provide some support to the ringgit, as the overnight policy rate (OPR) is expected to remain steady at 2.75%.

“Further US rate cuts would narrow the gap between the Fed funds rate and the OPR, which could be ringgit-positive,” he added.

At 6pm, the ringgit climbed to 4.1950/4.1985 against the US dollar from yesterday’s close of 4.1980/4.2025.

At the close, the ringgit traded mostly higher against most major currencies.

It rose against the British pound to 5.4795/5.4841 from 5.5099/5.5158 at yesterday’s close, and climbed versus the euro to 4.8238/4.8279 from 4.8344/4.8396.

However, the local currency went down against the yen to 2.7331/2.7355 from 2.7230/2.7261 previously.

The local note also traded mostly higher against Asean currencies.

It strengthened against the Singapore dollar to 3.2131/3.2160 from 3.2206/3.2243 at yesterday’s close, advanced vis-a-vis the Thai baht to 12.8859/12.9026 from 12.9285/12.9483, and was slightly higher against the Indonesian rupiah at 251.0/251.4 from 251.7/252.1 yesterday.

The ringgit went down against the Philippine peso to 7.16/7.18 from 7.14/7.15 previously.