Ringgit closes lower against US dollar
THE ringgit closed lower against the American dollar yesterday as upbeat consumer sentiment data in the US, coupled with rising 10-year US Treasury bond yields, renewed worries that US interest rates would stay higher for longer, an analyst said.
At 6pm, the ringgit fell to 4.7030/7060 versus the greenback compared to yesterday’s close of 4.6890/6910.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the ringgit depreciated against the greenback after lingering around RM4.69 in the past two days, with the US dollar Index having gained by 0.14% to 104.76 points.
“The market appears to be zooming into the Personal Consumption Expenditures price index data to be released on Friday to get fresh cues about the US interest rate outlook. In the meantime, US Federal Reserve officials have continued to suggest that interest rates will remain high and this has supported the greenback,” he told Bernama.
At the close, the ringgit was also traded lower against a basket of major currencies.
The local unit depreciated against the Japanese yen to 2.9923/9944 from Tuesday’s close of 2.9876/9890, slipped vis-a-vis the euro to 5.1032/1065 from 5.1002/1024 and eased versus the British pound to 6.0010/0049 from 5.9897/9923 on Tuesday.
The ringgit performed mostly higher than its Asean peers. It strengthened against the Thai baht to 12.7938/8068 from 12.7975/8089 at Tuesday’s close, firmed vis-a-vis the Indonesian rupiah to 290.9/291.3 from 291.3/291.6 and rose versus the Philippine peso to 8.04/8.05 from 8.09/8.10. However, it slipped against the Singapore dollar to 3.4850/4875 from 3.4785/4802 on Tuesday.