Ringgit ends lower as investors shift back to US dollar

KUALA LUMPUR, July 6 — The ringgit closed lower against the US dollar today as investors returned to the greenback following its recent pullback after a weaker-than-expected US June employment report.

Investors also remained cautious ahead of the release of the US Federal Reserve’s June meeting minutes this week, said Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid.

At 6 pm, the local currency eased to 4.0825/0875 versus the greenback from 4.0690/0735 at Friday’s close.

He said other Asian currencies, like the ringgit, were also generally weaker against the US dollar.

“Today, the market will be observing the incoming data point. Tonight the ISM index for the US services sector will be published.

“Consensus estimate has pegged the index at 54.2 points for June, slightly lower compared with 54.5 in May,” Mohd Afzanizam told Bernama. 

Meanwhile, the ringgit was mostly softer against a basket of major currencies.

It weakened versus the euro to 4.6594/6651 from 4.6497/6612 at Friday’s close and depreciated against the British pound to 5.4440/4507 from 5.4296/4430 at the end of last week.

However, it strengthened against the Japanese yen to 2.5148/5180 from 2.5214/5277 previously.

The local note was traded lower against regional currencies.

It fell versus the Singapore dollar to 3.1554/1595 from 3.1483/1563 at Friday’s close and weakened vis-a-vis the Thai baht to 12.2403/2600 from 12.2384/2744 previously.

The ringgit also slid against the Indonesian rupiah to 226.8/227.2 from 226.2/226.8 last Friday and fell versus the Philippine peso to 6.64/6.65 from 6.61/6.63. — Bernama