KUALA LUMPUR, Aug 14 —The ringgit ended lower against the US dollar on Monday in tandem with the weaker regional currency performances following the strengthening of the greenback, an economist said.
At 6pm, the local note fell to 4.6140/6175 against the US dollar compared with 4.5865/5895 on Friday.
Bank Muamalat Malaysia Bhd chief economist and social finance head Mohd Afzanizam Abdul Rashid said investors have entered into a risk-off mode as market participants zoomed into China’s data which showed signs of weaknesses.
“In light of the stark difference in respect to monetary policies in China and the United States whereby the former would favour an easing bias, it would make the US dollar stand out.
“Therefore, the US dollar would be well supported in the near term,” he told Bernama.
Meanwhile, SPI Asset Management managing partner Stephen Innes said the ringgit is more susceptible to China’s economic and yuan weakness due to Malaysia’s close trading ties with China.
“Given a status quo outcome from post-election political risk, we think the weaker ringgit is related to China’s economic woes.”
The ringgit was traded lower against a basket of major currencies.
It weakened against the Japanese yen to 3.1832/1858 from 3.1712/1735 on Friday and fell vis-a-vis the British pound to 5.8575/8619 from 5.8230/8268. It even closed easier versus the euro at 0519/0557 from 5.0351/0384 previously.
The local unit also traded mixed against other Asean currencies.
It inched up against the Indonesian rupiah to 301.2/301.6 from 301.3/301.6 on Friday and strengthened against the Philippine peso to 8.11/8.13 from 8.14/8.15.
However, it was lower versus the Singapore dollar at 3.4064/4095 from 3.3967/3991 on Friday and declined against the Thai baht to 13.1173/1332 from 13.0737/0871 previously.
— Bernama
