Ringgit closes lower amid cautious sentiment

 

KUALA LUMPUR: 

The ringgit extended its decline to close lower against the US dollar today, weighed down by cautious sentiment and subdued demand, an analyst said.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the ringgit also eased against major currencies, as traders likely took profits from last week’s gains when the ringgit appreciated by 1.3% week-on-week against the US dollar.

Afzanizam added that markets are now focusing on tonight’s US data releases, including the ISM Index for August, to gauge the likelihood of an anticipated US interest rate cut.

“It appears that markets have already made up their mind that the rate cut will occur in September.

However, should the data intermittently show some strength, it might cause the US dollar to appreciate,

 he told Bernama.

At 6pm, the local currency weakened to 4.3675/4.3705 against the greenback, down from yesterday’s close of 4.3550/4.3600.

At the close, the ringgit fell against the Japanese yen to 2.9921/2.9943 from 2.9688/2.9725 yesterday, declined vis-a-vis the euro to 4.8208/4.8242 from 4.8197/4.8252, and weakened against the British pound to 5.7267/5.7306 from 5.7203/5.7269.

Meanwhile, the ringgit traded mostly lower against Asean currencies.

The local currency weakened against the Singapore dollar to 3.3360/3.3386 from 3.3321/3.3361 yesterday and depreciated vis-a-vis the Thai baht to 12.7537/12.7680 from 12.7228/12.7429 previously.

It also fell versus the Indonesian rupiah to 281.2/281.6 from 280.4/280.9 but rebounded against the Philippine peso to 7.71/7.72 from 7.72/7.73 yesterday. - FMT