THE ringgit ended lower against the US dollar today following China’s unexpected rate cut today. 

At 6pm, the local note fell to 4.6335/6385 against the US dollar compared with 4.6140/6175 yesterday. 

Bank Muamalat Malaysia Bhd chief economist and social finance head Mohd Afzanizam Abdul Rashid said China surprisingly cut a key policy rate – the second reduction this year – signalling the central bank is committed to providing support for economic growth.  

It was reported that the People’s Bank of China unexpectedly cut the one-year medium-term lending facility rate by 15 basis points to 2.5% from 2.65%. 

“The Chinese yuan and ringgit are closely correlated. Therefore, any weakening of the yuan will have a direct bearing on the ringgit. 

“We have seen the dollar-ringgit pair depreciating to RM4.6335,” he told Bernama. 

The ringgit was traded mostly lower against a basket of major currencies.  

It rose against the Japanese yen to 3.1830/1867 from 3.1832/1858 yesterday, fell vis-a-vis the British pound to 5.8966/9030 from 5.8575/8619 and was easier versus the euro to 5.0690/0745 from 5.0519/0557 previously. 

The local unit was traded mostly lower against other Asean currencies. 

The ringgit inched up against the Thai baht at 13.0908/1105 from 13.1173/1332 yesterday but slid against the Philippine peso to 8.15/8.16 from 8.11/8.13. 

It was lower vis-a-vis the Singapore dollar to 3.4155/4197 from 3.4064/4095 at yesterday’s close and declined versus the Indonesian rupiah to 301.9/302.4 from 301.2/301.6 previously. – Bernama, August 15, 2023.