KUALA LUMPUR, The ringgit ended the day lower against the US dollar as a risk-off mode emerged, with investors continuing to favour the safe-haven currency due to a cautious global growth outlook, an economist said.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the scenario could drive the US Federal Reserve to consider a cut of about 50 basis points next week.
At 6 pm, the local note depreciated to 4.3700/3745 versus the greenback from last Friday’s close of 4.3275/3330.
He also attributed the weaker ringgit performance to the US Dollar Index’s (DXY) rise to 101.482 points.
‘Market sentiments appear to be guarded after the release of the August US non-farm payrolls data last week which missed the consensus estimates of 165,000 (new jobs) as the number stood at 142,000.
‘Japan’s gross domestic product growth for the second quarter of 2024 also came in lower than expected at 2.9 per cent versus the consensus estimates of 3.2 per cent, while China’s consumer price index fo
r August rose 0.6 per cent, lower than the consensus estimates of 0.7 per cent,’ he told Bernama.
At the close, the ringgit traded lower against a basket of major currencies.
It dropped versus the euro to 4.8310/8360 from 4.8087/8148 at last Friday’s close, eased against the British pound to 5.7195/7253 from 5.7010/7083 previously, and fell vis-a-vis the Japanese yen to 3.0449/0482 from 3.0296/0337.
The ringgit traded mixed against ASEAN currencies.
It strengthened versus the Thai baht to 12.8666/8851 from 12.9087/9305 last Friday, but slipped against the Indonesian rupiah to 282.6/283.1 from 281.3/281.9 previously and edged down vis-a-vis the Singapore dollar to 3.3453/3490 from 3.3327/3372.
The local note was flat against the Philippine peso at 7.74/7.75.
Source: BERNAMA News Agency
