US manufacturing data disappoints, causing the Ringgit to appreciate to 4.68 against the Asian currency.

While Asian currencies are generally strengthening, the Ringgit has also appreciated against the US dollar, reaching as high as 4.6820 Ringgit to 1 US dollar in early trading.

According to Bloomberg, following the latest weaker-than-expected US ISM manufacturing data, US bond yields declined, causing the US dollar to weaken, and the Ringgit to strengthen along with other Asian currencies.

Dr. Mohamad Afni Bin Mohamad Amin, Chief Economist of Muamalat Bank, told Bernama that the US ISM Manufacturing Index fell below the 50 threshold for the second consecutive month, further dropping to 48.7 points in May.

"The weakness in manufacturing data led to a decline in US bond yields, with the 2-year and 10-year bond yields dropping to 4.81% and 4.39% respectively."

He also mentioned that the likelihood of a US interest rate cut has increased, and the market's focus is now on the Federal Reserve's interest rate meeting on the 11th and 12th of this month, which could potentially provide better support for the Ringgit today.