Selangor Journal
Image for illustration purposes only. — Picture by BERNAMA

Ringgit ends lower against greenback on weaker global economic activity

KUALA LUMPUR, Aug 28 — The ringgit ended lower against the US dollar today in tandem with regional currencies on lingering concerns over weaker global economic activities, said an analyst.

At 6pm, the local note weakened to 4.6535/6565 against the greenback from 4.6385/6430 from the close on Friday.

Bank Muamalat Malaysia Bhd chief economist and social finance head Dr Mohd Afzanizam Abdul Rashid said fear of weaker global economic activities was gaining momentum as reflected by the flash Purchasing Managers Index for advanced countries.

“Such fear has led to higher demand for safe haven currencies such as the US Dollar.”

While the PMIs have weakened, he also said major central banks appeared reluctant to shift their stance, and this would lead to greater uncertainties.

“Moreover, the latest consumer price index (CPI) print for Malaysia indicates that Bank Negara Malaysia is likely to keep the overnight policy rate (OPR) unchanged at 3.00 per cent in September,” he said.

Malaysia’s CPI cooled to  2.0 per cent in July 2023, the lowest for the year, with the index points recorded at 130.5 as against 127.9 in the same month of 2022.

Meanwhile, the ringgit traded mostly lower against a basket of major currencies.

The local note slid versus the euro to 5.0290/0323 from 5.0054/0103 at last Friday’s close and shed against the British pound to 5.8522/8560 from 5.8385/8441 but was slightly better against the Japanese yen to 3.1752/1774 from 3.1757/1790 previously.

At the same time, the ringgit traded mixed lower against other Asean currencies.

It depreciated against the Singapore dollar at 3.4282/4307 from 3.4202/4238 at last Friday’s close and slipped against the Indonesian rupiah to 304.2/304.6 from 303.2/303.7 previously.

However, the local currency appreciated vis-a-vis the Thai baht to 13.1936/2088 from 13.2121/2309 last Friday and was firmer against the Philippine peso to 8.19/8.20 from 8.20/8.21 earlier.

— Bernama

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