Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid noted that other emerging currencies were also weaker against the greenback, with the US dollar index (DXY) appearing to be on firmer footing today, moving towards 106.89 points.
“Geopolitics is taking centre stage. Additionally, there have been talks about the EU potentially increasing its military spending.
“The global situation is very mixed and it remains highly uncertain how this might affect global monetary policies and foreign exchange markets,” he told Bernama.
As a result, he pointed out that the US dollar could see heightened demand as traders and investors tend to seek refuge in the safe-haven currency.
In addition, he said investors will be closely watching the US Federal Reserve’s meeting minutes, later this week for clues on interest rates outlook.
“On that note, the ringgit may remain weak in the near-term,” he added.
At 6pm, the ringgit depreciated to 4.4440/4.4480 versus the greenback compared to yesterday’s close of 4.4300/4.4360.
The local currency traded lower against a basket of major currencies.
It depreciated versus the euro to 4.6511/4.6553 from 4.6413/4.6476 at yesterday’s close, fell against the British pound to 5.6030/5.6080 from 5.5765/5.5840 and slipped vis-a-vis the Japanese yen to 2.9272/2.9302 from 2.9179/2.9221 previously.
The local currency traded mixed against Asean currencies.
The ringgit decreased against the Singapore dollar to 3.3115/3.3150 from 3.3025/3.3072 at market close yesterday and eased versus the Thai baht to 13.1881/13.2067 from 13.1349/13.1593.
It was flat against the Indonesian rupiah at 272.9/273.3 from 272.9/273.4 yesterday and unchanged against the Philippine peso at 7.63/7.64 from 7.63/7.65 previously. - FMT
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