Ringgit slips v greenback


The ringgit is projected to remain weak against the US dollar, with the immediate resistance level at 4.6257. – The Malaysian Insight file pic, May 24, 2023.

THE ringgit opened lower against the US dollar, which remained firm, driven by a jump in US Treasury yield amid uncertainties surrounding debt ceiling talks, said an analyst.

At 9am, the local note stood at 4.5790/5820 versus the greenback from yesterday’s close of 4.5700/5750.

Bank Muamalat Malaysia Bhd chief economist and social finance head Mohd Afzanizam Abdul Rashid said the US government debt ceiling negotiations are in the limelight as politicians have yet to agree on raising the limit, without which there would be debt default.

“At 129% of gross domestic product, the US government debt is sizeable and any default could reverberate across the global markets.

But “the US dollar is still deemed a safe haven currency and in times of uncertainty, market players would be inclined to seek protection by holding more dollars”, he told Bernama.

He said the US Dollar Index remains elevated at 103.488 points.

The ringgit is likely to remain weak, with the immediate resistance level at 4.6257, he said.

The ringgit traded lower against several major currencies. 

It weakened vis-a-vis the British pound to 5.6894/6931 from 5.6577/6639 yesterday, depreciated against the euro to 4.9325/9357 from 4.9251/9305 and was lower against the Japanese yen at 3.3059/3083 from 3.3006/3044 yesterday. 

The local note traded lower against other Asean currencies. 

It eased versus the Indonesian rupiah at 307.7/308.1 from 307.1/307.7 at yesterday’s close and fell to 3.3994/4021 from 3.3920/3962 against the Singapore dollar.

The ringgit was marginally lower against the Philippine peso to 8.21/8.22 against 8.20/8.21 from yesterday’s close and decreased vis-a-vis the Thai baht to 13.2341/2481 from 13.1712/1920 previously. – Bernama, May 24, 2023.


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