Despite softer-than-expected US inflation data overnight, markets shifted their focus to China's slowing economy and renewed geopolitical tensions in the Middle East, says an analyst.
At 6pm, the local currency stood at 4.0760/4.0805 versus the greenback compared with Tuesday’s close of 4.0760/4.0800.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said that despite the lower-than-expected US Consumer Price Index reading released overnight, market attention appeared to have shifted towards China’s slowing economic growth.
China’s economy expanded by 4.3% in the second quarter of 2026, down from 5% in the first quarter, prompting cautious trading in the ringgit throughout the day.
“Meanwhile, the ceasefire in the Middle East appears increasingly fragile following US president Donald Trump’s threat to bombard Iran unless it stops attacking ships passing through the Strait of Hormuz,” he told Bernama.
At the close, the ringgit traded mostly lower against a basket of major currencies.
It weakened versus the British pound to 5.4578/5.4638 from 5.4533/5.4586 at Tuesday’s close and declined vis-a-vis the euro to 4.6536/4.6587 from 4.6470/4.6516 previously.
However, the local note gained vis-a-vis the Japanese yen to 2.5103/2.5132 from 2.5131/2.5157.
The ringgit also performed mostly weaker against regional currencies.
It eased versus the Singapore dollar to 3.1546/3.1583 from 3.1533/3.1567 at yesterday’s close, depreciated against the Indonesian rupiah to 225.5/225.9 from 225.3/225.6 previously, and slipped vis-a-vis the Philippine peso to 6.61/6.62 from 6.60/6.61.
Meanwhile, it strengthened against the Thai baht to 12.1198/12.1371 from 12.1556/12.1722 previously. - FMT
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