Kuala lumpur: The ringgit ended lower against the US dollar on Wednesday as markets adopted a cautious stance ahead of key US economic data releases later tonight, an analyst said. At 6 pm, the local currency fell to 4.0560/0610 versus the greenback from Tuesday's close of 4.0445/0495.
According to BERNAMA News Agency, IPPFA Sdn Bhd's director of investment strategy and country economist, Mohd Sedek Jantan, mentioned that the upcoming US labour data, including the ADP and JOLTS reports, as well as the US ISM Services Purchasing Managers' Index (PMI), will be closely monitored for signs of labour market tightness and services sector momentum. He noted that strong economic indicators would reinforce the dollar's yield advantage, keeping the ringgit on the defensive into tomorrow's Asian session. Conversely, any downside surprises could quickly diminish dollar support, allowing regional currencies to recover.
Mohd Sedek further explained that, beyond the near-term volatility, China's policy stance remains a crucial stabilizer for the ringgit. The People's Bank of China's plan to cut reserve-requirement ratios and policy rates in 2026 to support liquidity, domestic demand, and yuan stability is expected to enhance the macroeconomic backdrop for Asia as a whole. A more stable renminbi could reduce regional foreign exchange spillovers and support trade and capital flows into ASEAN, potentially establishing a medium-term floor under the ringgit even amid short-term fluctuations driven by US data and dollar dynamics.
At the close, the ringgit traded lower against a basket of major currencies. It depreciated against the Japanese yen to 2.5920/5954 from 2.5865/5899 at Tuesday's close, weakened against the euro to 4.7394/7453 from 4.7373/7432, and slightly gained versus the British pound to 5.4732/4799 from 5.4742/4810.
The local note traded mostly lower against ASEAN peers. The ringgit rose against the Indonesian rupiah to 241.7/242.1 from 243.1/241.7 on Tuesday and remained unchanged against the Philippine peso at 6.83/6.84, the same as yesterday's close. However, it dipped against the Singapore dollar to 3.1641/1682 from 3.1608/1649 and dropped versus the Thai baht to 12.9630/9852 from 12.9383/9592 previously.