Ringgit closes lower against the US Dollar

KUALA LUMPUR: The ringgit closed lower today against the US dollar due to a risk-off market sentiment, with investors continuing to prefer safe-haven currencies amid cautious global growth prospects, according to economists.

According to Bernama, Dr. Mohd Afzanizam Abdul Rashid, Chief Economist at Bank Muamalat Malaysia Bhd, said the situation could prompt the US Federal Reserve to consider a 50 basis point cut next week.

At 6 PM, the local currency fell to 4.3700/3745 against the US dollar from 4.3275/3330 at Friday’s close.

He also linked the decline in the ringgit’s performance to a rise of 101.482 points in the US Dollar Index (DXY).

“Market sentiment appears somewhat cautious following the release of the US non-farm payroll data for August last week, which missed the consensus forecast of 165,000 new jobs and instead came in at 142,000.

“Japan’s second-quarter 2024 GDP growth was also below expectations at 2.9 percent compared to the consensus estimate of 3.2 percent, while China’s consumer price index for August increased by 0.6 percent, lower than the consensus estimate of 0.7 percent,” he told Bernama.

At the close of trading, the ringgit was lower against major currencies.

It depreciated against the euro to 4.8310/8360 from 4.8087/8148 at Friday’s close, weakened against the pound to 5.7195/7253 from 5.7010/7083 previously, and fell against the yen to 3.0449/0482 from 3.0296/0337.

The ringgit also traded mixed against ASEAN currencies.

It strengthened against the Thai baht to 12.8666/8851 from 12.9087/9305 on Friday, but fell against the Indonesian rupiah to 282.6/283.1 from 281.3/281.9 previously, and depreciated against the Singapore dollar to 3.3453/3490 from 3.3327/3372.

However, the local currency remained unchanged against the Philippine peso at 7.74/7.75.