KUALA LUMPUR: The ringgit remained relatively stable against the US dollar at Monday’s close, with little demand and declining oil prices. As of 6 pm, the local currency stood at 4.6685/6725 against the greenback, slightly higher compared to Friday’s 4.6655/6675. According to Bank Muamalat Malaysia Bhd chief economist and social finance head Dr Mohd Afzanizam Abdul Rashid, the ringgit’s weakness persisted despite weaker-than-expected US non-farm payroll data released last Friday. He also pointed out that China’s consumer price index remained stagnant in June, suggesting more room for the country to use monetary policy to support its economy. “This, in turn, drives up the attractiveness of the US dollar, as interest rates in the United States are expected to stay relatively high compared to other major central banks around the world,” he told Bernama.
Meanwhile, Stephen Innes, the managing director of SPI Asset Management, highlighted that Asian foreign exchange traders remained cautious about selling the US dollar ahead of the US Consumer Price Index (CPI) this week. The fear of a strong core CPI supporting the greenback through higher interest rates continued to prevail. “As a result, they are reluctant to sell their US dollar holdings until the Federal Reserve (Fed) indicates a definitive pause in interest rates,” he said.
The ringgit traded lower against most major currencies at today’s close. It declined against the euro, reaching 5.1176/1220 from Friday’s 5.0765/0787. It also slipped against the Japanese yen, weakening to 3.2761/2792 from 3.2601/2617, and experienced a similar trend against the British pound, reaching 5.9785/9836 from 5.9466/9492.
However, the ringgit showed mixed performance against other ASEAN currencies. It was down versus the Singapore dollar, reaching 3.4612/4644 from Friday’s close of 3.4511/4528, and weakened against the Thai baht, amounting to 13.2790/2961 from 13.2471/2588. On the other hand, the ringgit rose against the Indonesian rupiah, ranging from 306.9/307.4 from 308.0/308.3, and remained nearly unchanged against the Philippine peso, at 8.38/8.39 from 8.39/8.39. – Bernama
Credit: The Star : Business Feed
