Ringgit closes lower due to lack of catalysts

 

KUALA LUMPUR: The ringgit traded marginally lower against the US dollar at the close today due to a lack of catalysts, said an analyst.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the market remained guarded as to how the US dollar would evolve given the mixed data points from the University of Michigan’s Consumer Sentiment Index and US Jobless Claims.

“On one hand, the weak data points mean that the Federal Reserve (Fed) could change its course next year.

“However, a stubborn inflation rate which may take a while to hit 2% may prevent the Fed from loosening their monetary stance prematurely,” he told Bernama.

At 6pm, the ringgit eased to 4.6775/4.6830 against the greenback from yesterday’s close of 4.6735/4.6805.

It was traded lower versus a basket of major currencies.

It weakened against the euro at 5.1092/5.1152 from 5.0946/5.1022 yesterday, dropped versus the Japanese yen to 3.1342/3.1381 from 3.1338/3.1387 and slid vis-a-vis the British pound to 5.8740/5.8809 from 5.8550/5.8637.

The local currency also traded mixed against other Asean currencies.

It was flat vis-a-vis the Indonesian rupiah at 300.6/301.2 from 300.0/300.6, fell versus the Singapore dollar to 3.4922/3.4969 from 3.4838/3.4893 and down against the Philippine peso at 8.44/8.46 from 8.42/8.44 previously.

However, the local currency rose versus the Thai baht to 13.2601/13.2813 from 13.2702/13.2957 yesterday. - FMT